EXAMINATION OF EMPIRICAL RELATIONSHIPS BETWEEN INDUSTRIAL ACTIVITIES AND AGRICULTURAL POLICY OUTPUTS IN NIGERIA (1970-2012)
The study investigated relationships between agricultural policy output (proxy by the agricultural productivity index, agricultural GDP/total GDP and crop productivity index) and output of industrial sector (proxy by the industrial capacity utilization rate) from 1970 to 2012 period in Nigeria. Th...
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| Format: | Article |
| Language: | English |
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International Journal of Food and Agricultural Economics
2014-01-01
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| Series: | International Journal of Food and Agricultural Economics |
| Subjects: | |
| Online Access: | http://www.foodandagriculturejournal.com/vol2.no1.pp13.pdf |
| _version_ | 1828030673215029248 |
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| author | Sunday Brownson Akpan Samuel James Udok Uwemedimo Eyo Okon |
| author_facet | Sunday Brownson Akpan Samuel James Udok Uwemedimo Eyo Okon |
| author_sort | Sunday Brownson Akpan |
| collection | DOAJ |
| description | The study investigated relationships between agricultural policy output (proxy by the agricultural productivity
index, agricultural GDP/total GDP and crop productivity index) and output of industrial sector (proxy by the
industrial capacity utilization rate) from 1970 to 2012 period in Nigeria. The study employed time series
variables obtained from the Central Bank of Nigeria (CBN), National Bureau of Statistics and Food and
Agricultural Organization (FAO). Augmented Dickey-Fuller unit root test was conducted on the specified time
series, and the result showed that all non-growth rate series were integrated of order one, while growth rate
series were stationary at level. The two-step Engle Granger method was employed to test for the presence of cointegration
among specified variables. The result revealed that variables were not co-integrated. To avoid
spurious regression, the specified models for non-growth rate series were estimated at first difference of the log
variables. The empirical result revealed that, the industrial activities Granger cause crop activities in Nigeria.
Also, the industrial activity has insignificant relationship with agricultural productivity indices in Nigeria. The
same result was also obtained for industrial activities and agricultural GDP/total GDP. However, the result
further revealed that, the industrial activity has significant negative correlation with the crop productivity index
in Nigeria. These imply that, agricultural production had not played significant role in industrial development
in Nigeria. This result suggests that, there is no significant impact of the backward integration policy of the
agricultural sector on industrial sector in Nigeria. In addition, the result revealed that, agricultural policies
during liberalization era (1986 - 2012) shifted the coefficient of the industrial activities positively. Therefore, it
is recommended that the agricultural production in Nigeria should be boosted so as to generate sufficient
demand and raw materials for the industrial sector. Agricultural policy of the liberalization period should be
promoted as an alternative way to bring on positive growth in industrial activities and hence economic
development in Nigeria. |
| first_indexed | 2024-04-10T14:31:56Z |
| format | Article |
| id | doaj.art-b34321fd2d0f48e6b824cffa6eecbbd6 |
| institution | Directory Open Access Journal |
| issn | 2147-8988 |
| language | English |
| last_indexed | 2024-04-10T14:31:56Z |
| publishDate | 2014-01-01 |
| publisher | International Journal of Food and Agricultural Economics |
| record_format | Article |
| series | International Journal of Food and Agricultural Economics |
| spelling | doaj.art-b34321fd2d0f48e6b824cffa6eecbbd62023-02-15T16:08:46ZengInternational Journal of Food and Agricultural EconomicsInternational Journal of Food and Agricultural Economics2147-89882014-01-01211322EXAMINATION OF EMPIRICAL RELATIONSHIPS BETWEEN INDUSTRIAL ACTIVITIES AND AGRICULTURAL POLICY OUTPUTS IN NIGERIA (1970-2012)Sunday Brownson Akpan0Samuel James Udok1Uwemedimo Eyo Okon2Akwa Ibom State University, NigeriaAkwa Ibom State University, NigeriaAkwa Ibom State University, NigeriaThe study investigated relationships between agricultural policy output (proxy by the agricultural productivity index, agricultural GDP/total GDP and crop productivity index) and output of industrial sector (proxy by the industrial capacity utilization rate) from 1970 to 2012 period in Nigeria. The study employed time series variables obtained from the Central Bank of Nigeria (CBN), National Bureau of Statistics and Food and Agricultural Organization (FAO). Augmented Dickey-Fuller unit root test was conducted on the specified time series, and the result showed that all non-growth rate series were integrated of order one, while growth rate series were stationary at level. The two-step Engle Granger method was employed to test for the presence of cointegration among specified variables. The result revealed that variables were not co-integrated. To avoid spurious regression, the specified models for non-growth rate series were estimated at first difference of the log variables. The empirical result revealed that, the industrial activities Granger cause crop activities in Nigeria. Also, the industrial activity has insignificant relationship with agricultural productivity indices in Nigeria. The same result was also obtained for industrial activities and agricultural GDP/total GDP. However, the result further revealed that, the industrial activity has significant negative correlation with the crop productivity index in Nigeria. These imply that, agricultural production had not played significant role in industrial development in Nigeria. This result suggests that, there is no significant impact of the backward integration policy of the agricultural sector on industrial sector in Nigeria. In addition, the result revealed that, agricultural policies during liberalization era (1986 - 2012) shifted the coefficient of the industrial activities positively. Therefore, it is recommended that the agricultural production in Nigeria should be boosted so as to generate sufficient demand and raw materials for the industrial sector. Agricultural policy of the liberalization period should be promoted as an alternative way to bring on positive growth in industrial activities and hence economic development in Nigeria.http://www.foodandagriculturejournal.com/vol2.no1.pp13.pdfAgriculturepolicyindustrylinkageimpactNigeria |
| spellingShingle | Sunday Brownson Akpan Samuel James Udok Uwemedimo Eyo Okon EXAMINATION OF EMPIRICAL RELATIONSHIPS BETWEEN INDUSTRIAL ACTIVITIES AND AGRICULTURAL POLICY OUTPUTS IN NIGERIA (1970-2012) International Journal of Food and Agricultural Economics Agriculture policy industry linkage impact Nigeria |
| title | EXAMINATION OF EMPIRICAL RELATIONSHIPS BETWEEN INDUSTRIAL ACTIVITIES AND AGRICULTURAL POLICY OUTPUTS IN NIGERIA (1970-2012) |
| title_full | EXAMINATION OF EMPIRICAL RELATIONSHIPS BETWEEN INDUSTRIAL ACTIVITIES AND AGRICULTURAL POLICY OUTPUTS IN NIGERIA (1970-2012) |
| title_fullStr | EXAMINATION OF EMPIRICAL RELATIONSHIPS BETWEEN INDUSTRIAL ACTIVITIES AND AGRICULTURAL POLICY OUTPUTS IN NIGERIA (1970-2012) |
| title_full_unstemmed | EXAMINATION OF EMPIRICAL RELATIONSHIPS BETWEEN INDUSTRIAL ACTIVITIES AND AGRICULTURAL POLICY OUTPUTS IN NIGERIA (1970-2012) |
| title_short | EXAMINATION OF EMPIRICAL RELATIONSHIPS BETWEEN INDUSTRIAL ACTIVITIES AND AGRICULTURAL POLICY OUTPUTS IN NIGERIA (1970-2012) |
| title_sort | examination of empirical relationships between industrial activities and agricultural policy outputs in nigeria 1970 2012 |
| topic | Agriculture policy industry linkage impact Nigeria |
| url | http://www.foodandagriculturejournal.com/vol2.no1.pp13.pdf |
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