Authors :
Sajo Sani Alhaji; Suleiman Purokayo Gambiyo
Volume/Issue :
Volume 8 - 2023, Issue 12 - December
Google Scholar :
http://tinyurl.com/38at5fd4
Scribd :
http://tinyurl.com/56fk2ty2
DOI :
https://doi.org/10.5281/zenodo.10422036
Abstract :
This research investigated the influence of
domestic investments on agricultural production in
Nigeria, utilizing time series data encompassing
Agricultural production, domestic investment,
agricultural land, rural population, and inflation rate
sourced from World Development Indicator (WDI) and
the IMF financial database spanning from 1981 to 2022.
The study applied the Accelerator growth model,
focusing on the repercussions of investment inflows on
agricultural production. The stationarity of the series
was assessed using the Phillips-Perron (PP-test) and
Augmented Dickey-Fuller (ADF) test, affirming that the
series were stationary at levels (I(0)) and some at first
differences (I(1)). The ARDL method for cointegration
was employed, and the bound test results indicated a
long-run relationship among the variables. The
inferential results demonstrated that domestic
investment had a positive impact on agricultural
production in Nigeria. However, this impact was deemed
insignificant due to the insufficient amount of domestic
savings to drive investments into the country.
Additionally, the findings revealed that agricultural land
and the rural population, constituting a substantial
percentage of the Nigerian population, had a positive
and significant effect on agricultural production. On the
other hand, the inflation rate exhibited a negative and
insignificant impact on agricultural production, aligning
with the anticipated expectations. In conclusion, the
study recommends an increase in domestic investment
from various sources, including households, the public
sector, and the government, as it holds both short and
long-term significant implications for agricultural
production. The generation of capital is advised through
the promotion of savings, mobilization, and directed
investment in productive sectors of the economy,
particularly the agricultural sector.
Keywords :
Domestic Investments, Agricultural Production, Agricultural Land, Rural Population and Inflation Rate.
This research investigated the influence of
domestic investments on agricultural production in
Nigeria, utilizing time series data encompassing
Agricultural production, domestic investment,
agricultural land, rural population, and inflation rate
sourced from World Development Indicator (WDI) and
the IMF financial database spanning from 1981 to 2022.
The study applied the Accelerator growth model,
focusing on the repercussions of investment inflows on
agricultural production. The stationarity of the series
was assessed using the Phillips-Perron (PP-test) and
Augmented Dickey-Fuller (ADF) test, affirming that the
series were stationary at levels (I(0)) and some at first
differences (I(1)). The ARDL method for cointegration
was employed, and the bound test results indicated a
long-run relationship among the variables. The
inferential results demonstrated that domestic
investment had a positive impact on agricultural
production in Nigeria. However, this impact was deemed
insignificant due to the insufficient amount of domestic
savings to drive investments into the country.
Additionally, the findings revealed that agricultural land
and the rural population, constituting a substantial
percentage of the Nigerian population, had a positive
and significant effect on agricultural production. On the
other hand, the inflation rate exhibited a negative and
insignificant impact on agricultural production, aligning
with the anticipated expectations. In conclusion, the
study recommends an increase in domestic investment
from various sources, including households, the public
sector, and the government, as it holds both short and
long-term significant implications for agricultural
production. The generation of capital is advised through
the promotion of savings, mobilization, and directed
investment in productive sectors of the economy,
particularly the agricultural sector.
Keywords :
Domestic Investments, Agricultural Production, Agricultural Land, Rural Population and Inflation Rate.
