Oil Price Shock and Agricultural Productivity: Stylised Evidence in Nigeria
Oil sector is a dominant sector, as it is the largest exported commodity in Nigeria. However, evidences have shown that Nigeria as an oil dependent country faces frequent oil price fluctuations that have pose greater challenge on agriculture sector in Nigeria, hence affecting agricultural productivi...
| Main Authors: | , , , |
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| Format: | Article |
| Language: | English |
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EconJournals
2022-05-01
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| Series: | International Journal of Energy Economics and Policy |
| Subjects: | |
| Online Access: | https://econjournals.com/index.php/ijeep/article/view/11773 |
| _version_ | 1797911342526496768 |
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| author | Olabisi Popoola Alege O. Philip Obindah Gershon Kaladede Gift |
| author_facet | Olabisi Popoola Alege O. Philip Obindah Gershon Kaladede Gift |
| author_sort | Olabisi Popoola |
| collection | DOAJ |
| description | Oil sector is a dominant sector, as it is the largest exported commodity in Nigeria. However, evidences have shown that Nigeria as an oil dependent country faces frequent oil price fluctuations that have pose greater challenge on agriculture sector in Nigeria, hence affecting agricultural productivity. This necessitates the need to investigate the effect of oil price shocks on agricultural productivity in Nigeria. This study adopted the Hodrick Prescott data filtering approach to check for the fluctuation of oil price. The result revealed fluctuation in Nigeria oil price from 2018 up until recently. Also, the Structural Vector Autoregression and normalized equation was used to establish the long-run equation. Evidence from the long-run relationship showed that agricultural productivity has a negative relationship with oil price and real exchange rate. Consumer price index, and oil production has as positive relationship with agricultural productivity. Variation in oil price affects most of the variables. However, oil price shock shows more variations across the time for agricultural productivity. To this end, this study revealed that oil price shock has adverse effect on agricultural productivity in Nigeria. Hence, the need for the government to implement a policy and programmes that will serve as oil price shock absorber in order to sustain agricultural productivity.
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| first_indexed | 2024-04-10T11:39:05Z |
| format | Article |
| id | doaj.art-d27557e32f00440792eef7f839c47b63 |
| institution | Directory Open Access Journal |
| issn | 2146-4553 |
| language | English |
| last_indexed | 2024-04-10T11:39:05Z |
| publishDate | 2022-05-01 |
| publisher | EconJournals |
| record_format | Article |
| series | International Journal of Energy Economics and Policy |
| spelling | doaj.art-d27557e32f00440792eef7f839c47b632023-02-15T16:17:38ZengEconJournalsInternational Journal of Energy Economics and Policy2146-45532022-05-0112310.32479/ijeep.11773Oil Price Shock and Agricultural Productivity: Stylised Evidence in NigeriaOlabisi Popoola0Alege O. Philip1Obindah Gershon2Kaladede Gift3Covenant University, Ota, Nigeria.Covenant University, Ota, Nigeria.Covenant University, Ota, Nigeria.Landmark University, Nigeria.Oil sector is a dominant sector, as it is the largest exported commodity in Nigeria. However, evidences have shown that Nigeria as an oil dependent country faces frequent oil price fluctuations that have pose greater challenge on agriculture sector in Nigeria, hence affecting agricultural productivity. This necessitates the need to investigate the effect of oil price shocks on agricultural productivity in Nigeria. This study adopted the Hodrick Prescott data filtering approach to check for the fluctuation of oil price. The result revealed fluctuation in Nigeria oil price from 2018 up until recently. Also, the Structural Vector Autoregression and normalized equation was used to establish the long-run equation. Evidence from the long-run relationship showed that agricultural productivity has a negative relationship with oil price and real exchange rate. Consumer price index, and oil production has as positive relationship with agricultural productivity. Variation in oil price affects most of the variables. However, oil price shock shows more variations across the time for agricultural productivity. To this end, this study revealed that oil price shock has adverse effect on agricultural productivity in Nigeria. Hence, the need for the government to implement a policy and programmes that will serve as oil price shock absorber in order to sustain agricultural productivity. https://econjournals.com/index.php/ijeep/article/view/11773Oil PriceShockAgricultural Productivity |
| spellingShingle | Olabisi Popoola Alege O. Philip Obindah Gershon Kaladede Gift Oil Price Shock and Agricultural Productivity: Stylised Evidence in Nigeria International Journal of Energy Economics and Policy Oil Price Shock Agricultural Productivity |
| title | Oil Price Shock and Agricultural Productivity: Stylised Evidence in Nigeria |
| title_full | Oil Price Shock and Agricultural Productivity: Stylised Evidence in Nigeria |
| title_fullStr | Oil Price Shock and Agricultural Productivity: Stylised Evidence in Nigeria |
| title_full_unstemmed | Oil Price Shock and Agricultural Productivity: Stylised Evidence in Nigeria |
| title_short | Oil Price Shock and Agricultural Productivity: Stylised Evidence in Nigeria |
| title_sort | oil price shock and agricultural productivity stylised evidence in nigeria |
| topic | Oil Price Shock Agricultural Productivity |
| url | https://econjournals.com/index.php/ijeep/article/view/11773 |
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