The Impact of Monetary Policy on Agricultural Development In Nigeria (1970-2010)

Ehinomen, Christopher

doi:10.9790/0837-0551325

Cited by 8 publications

(7 citation statements)

References 10 publications

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“…They also advised the need for the state to give incentives for instance through lower interest rates for agricultural businesses in order to encourage both local and foreign investors to patronize this sector of the country. Ehinomen & Charles (2012) in exploring ways for sustainable ways for growth for Nigeria investigated the agricultural sector in the country and how monetary policy impacted its development. They found that interest rate had a monumental effect on agricultural development especially through stimulation of investments.…”

Section: Literature Review 31 Nigeriamentioning

confidence: 99%

An Empirical Analysis of the Impact of Interest Rate

2019

JESD

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This study using regression analysis tried to find connection between lending interest rate and agricultural sector activity in Nigeria for real and nominal values from the beginning of the fourth and current republic (1999) to 2016. Tests showed that interest rate had a strong significant negative relationship with agricultural sector activity. Because interest rate and monetary policy is currently not the main tool used by the federal government to improve this sector this recommended more favorable lending interest rates for farmers and industries to be used in sync with government spending in the agricultural sector as an effective way of improving its performance. AcknowledgementFirstly, I would like to acknowledge the pivotal role of my supervisor Mr. Nizar Ali Khan and my lecturer Mr. Cai Yunchao in conducting this study. I would also like to express my gratitude to SEGi College and the University of Greenwich for facilitating this research.

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Section: Literature Review 31 Nigeriamentioning

confidence: 99%

An Empirical Analysis of the Impact of Interest Rate

2019

JESD

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“…Agricultural finance is concerned with the acquisition and utilization of funds for the development of agriculture. Ehinomen and Charles (2012) stated that agricultural finance is basically related to agricultural development. It refers to the processes by which funds are made available to rural farmers to enable them adopt innovations that will facilitate agricultural development.…”

Section: Introductionmentioning

confidence: 99%

Impact of Broad Money and Exchange Rate on Agricultural Gross Domestic Product: An Unrestricted Var Model Approach

Ogbanje¹,

Ihemezie²

2021

JASD

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Expansionary monetary policy is a major driver of economic changes via money supply. Broad money, which represents total money supply in an economy, has several economic impacts. The study examines the impact of broad money (MS2) and exchange rate (XR) on agricultural gross domestic product (AGDP) in Nigeria. Secondary data from 1981 to 2018were obtained from the Central Bank of Nigeria. Descriptive statistics, Augmented Dickey-Fuller, Johansen Co-integration test and Vector Autoregression model were employed. Broad money had a large coefficient of variation. Variables were stationary at the first difference, supported by a spurious regression of d1lnagdp on d1lnms2 and d1lnxr whose R2 (0. 2411) was greater than Durbin Watson statistics (1.889914). Johansen's Co-integration test rules out the long-run relationship. Using the AGDP model of the VAR, the result shows that the chi2 statistic (16687.39) is statistically significant (P<0.01), with an R2 of 0.9978. Ms2 and XR have coefficients of 0.3389 and 0.2502, respectively, with statistically significant (P<0.01) and z-statistics of 3.92 and 5.44, respectively. The findings suggest increased broad money for increased agricultural gross domestic product. An increase in the exchange rate should be adopted for an increased agricultural gross domestic product but with caution to forestall the trade-off effect on inflation.

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“…The effectiveness of monetary policy in promoting agricultural development in Nigeria was the focus of another study by Ehinomen and Akorah (2012). The authors employed the ordinary least squares method with data covering 1970 and 2010 to show the positively significant impact of money supply on agricultural output.…”

Section: Empirical Literaturementioning

confidence: 99%

Does Monetary Policy matter for Agricultural Sector Performance? Empirical Evidence from Nigeria

2019

JESD

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The paper examined the impact of monetary policy on agricultural sector performance in Nigeria, using annual data spanning the period 1981 to 2016. Given its significant role in providing employment to about 60 % of the economically active population and 70% of the country's poorest communities, agriculture has huge potential for achieving poverty reduction in Nigeria. In this regard, the study employed the Autoregressive-Distributed Lag (ARDL) approach and established a long-run relationship between agriculture value added and some monetary policy variables. Specifically, the findings suggested that in the long-run, money supply and maximum lending rate have significant effects on agriculture value added while exchange rate and inflation do not. Given the important role of money supply in promoting agricultural sector performance, the paper recommends an expansionary but non-inflationary monetary policy to improve value addition to the agricultural sector of the Nigerian economy.

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The Impact of Monetary Policy on Agricultural Development In Nigeria (1970-2010)

Cited by 8 publications

References 10 publications

An Empirical Analysis of the Impact of Interest Rate

An Empirical Analysis of the Impact of Interest Rate

Impact of Broad Money and Exchange Rate on Agricultural Gross Domestic Product: An Unrestricted Var Model Approach

Does Monetary Policy matter for Agricultural Sector Performance? Empirical Evidence from Nigeria

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