Impact of Commercial Banksâ Credit on Agricultural Productivity in Nigeria (Time Series Analysis 1980 - 2013)

Agunuwa, Ekokotu Vincent; Inaya, Lucky; Timothy, Proso

doi:10.6007/ijarbss/v5-i11/1921

Cited by 17 publications

(13 citation statements)

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“…In the present study, we determine that loan expansion increases agricultural production. The findings of the study are in line with the findings of Sogo-Temi and Olubiyo (2004), Das et al (2009), Ekokotu Vincent and Lucky (2015), Chandio et al (2016a, b) and Rehman et al (2017a, b). Also, the findings of the present study show similarity to the results of Duramaz and Taş (2018).…”

Section: Discussionsupporting

confidence: 92%

“…In the literature, several studies examine the nexus between agricultural loans and agricultural production. Indeed, these studies (Sogo-Temi and Olubiyo, 2004; Das et al , 2009; Ahmad, 2011; Terin et al , 2014; Ekokotu Vincent and Lucky, 2015; Chandio et al , 2016a, b, 2018, 2020; Rehman et al , 2017a, b; Duramaz and Taş, 2018) reveal that there is a relationship between agricultural loans and agricultural production and the agricultural loans positively affect agricultural production. On the other hand, many studies (Carter, 1989; Carter and Wiebe, 1990; Feder et al , 1990; Binswanger and Khandker, 1995; Pitt and Khandker, 1996; Khandker and Faruqee, 2003; Awotide et al , 2015; Khandker and Koolwal, 2016; Narayanan, 2016) argue the benefits of agricultural loans in developing countries and indicate that agricultural loans rise productivity and farmer incomes.…”

Section: Introductionmentioning

confidence: 99%

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The nexus between agricultural production and agricultural loans for banking sector groups in Turkey

Kaya

Kadanalı

2021

AFR

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PurposeThis study aims to determine the nexus between agricultural production and agricultural loans for the period Q1 2003–Q4 2018 in Turkey.Design/methodology/approachThe authors employ the time-series analyses within the scope of the study. Firstly, they run the Engle–Granger two-step cointegration test and the Toda–Yamamoto causality analysis. They also use the dynamic ordinary least squares (DOLS) model estimator and estimate the vector autoregression model for predicting the dynamic structure of time series.FindingsThe results of time series analyses reveal that the variables are cointegrated and there are causal relationships between agricultural loans and agricultural production. Also, the variance decomposition findings indicate that the effect of agricultural loans provided by development-investment banks and participation banks on agricultural production has increased over the years, and the deposit banks have a high impact on agricultural production. The results of the DOLS model indicate that agricultural loans have a positive effect on agricultural production.Originality/valueThis research is one of the few studies that comprehensively determines the direction of nexus between agricultural production and agricultural loans in Turkey economy. This is the first contribution of the study in the literature. Another contribution of this study is to investigate the nexus between agricultural production and agricultural loans for banking sector groups. Unlike other studies in the literature, this study calculates the variance decomposition by going beyond unit root and cointegration tests. Thus, this study has deep findings.

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Section: Discussionsupporting

confidence: 92%

Section: Introductionmentioning

confidence: 99%

The nexus between agricultural production and agricultural loans for banking sector groups in Turkey

Kaya

Kadanalı

2021

AFR

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“…Thirty-four observations from the Nigerian economy's aggregated data revealed a positive link between the agricultural bank credit of commercial banks and agricultural output. A negative relationship was found between the rate of interest and agricultural GDP within the exact estimation, while Government expenditure showed a strong positive connection with agricultural GDP in the same model (Agunuwa et al, 2015).…”

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confidence: 67%

Effect of bank credit on agricultural gross domestic product

Patwary

Islam

Mosharrafa

2023

Agric. resour. econ.

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Purpose. This study aimed to provide the central bank of Bangladesh with some empirical data on the impact of bank agricultural credit on agricultural output as a priority sector lending. Methodology / approach. Econometric analysis is applied to discover the nature of the relationship between banks’ agricultural credit and agricultural gross domestic product (GDP) and to find the impact of bank agricultural credit on agricultural output in Bangladesh. Data are extracted from secondary sources, i.e., Bangladesh Bank, Bangladesh Bureau of Statistics, World Bank, and Ministry of Finance for 1991 to 2018. Time-series data are analyzed using the Augmented Dickey–Fuller (ADF) unit root test and the Johansen cointegration test and later examined with Vector Error Correction Model (VECM). Results. The Augmented Dickey–Fuller unit root test confirmed that the variables were non-stationary at their level data and became stationary after taking their first difference value. Since the variables are integrated at I(1), we performed the Johansen Co-integration test. Subsequently, one co-integration equation was found, and Vector Error Correction Model estimation was done afterwards. According to the results of VECM estimation, bank agricultural credit, pesticide consumption, and use of cropped areas have long-run relation with agricultural output. Originality / scientific novelty. This study reveals the nature of relationship and assessment of the impact of bank credit on agricultural GDP with empirically valid techniques and tools. In this context, the data from Bangladesh remains very rare. Moreover, for those works which have been done in the context of Bangladesh, appropriate methods and techniques are not always inherent. Hence, this significant research gap is addressed in our present study. Thus, we expect that the findings of this study from Bangladesh based on empirically valid standard techniques can incrementally contribute to the existing literature. Practical value / implications. Findings of this research, can be used as an information basis by the central bank of Bangladesh. Based on the findings of this research, Bangladesh Bank should initiate new policies and programs regarding agricultural credit for the projected increase in agricultural GDP in Bangladesh.

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“…Additional findings reveal that commercial banks' lending to the agricultural sector has a considerable and rising influence on the contribution of the agricultural sector to GDP in Nigeria. These researchers, Agunuwa et al, (2015), use the Ordinary Least Squares (OLS) methodology to study the impact of commercial bank loans on agricultural productivity in Nigeria. This implies that there is a positive linkage between commercial bank lending, government spending, and agricultural output, but a negative relationship between interest rates and agricultural output.…”

Section: Empirical Literaturementioning

confidence: 99%

Effect of Agricultural Financing on the Performance of Agricultural Sector in Nigeria

Obioma

Ihemeje

Ogbonna

et al. 2021

JLB

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The study examined the effects of agricultural financing on the performance of agricultural sector in Nigeria using annual time series data. The data for the study was sourced from the Central Bank of Nigeria (CBN) Statistical Bulletin. Contribution of agriculture to GDP was used as proxy for the performance of agricultural sector, commercial banks loan to agriculture, rain fall, government expenditure to agriculture and interest rate were used as proxy for explanatory variables. Following unity in the order of integration, Johansen cointegration approach was used to check for the long run relationship among the variables. Vector autoregressive estimate the vector correction mechanism was used to examine the speed of adjustment of the variables from the short run dynamics to the long run equilibrium. The study found that there is long run relationship among the variables. Specifically; there is significant and long run effect of Agricultural Credit Guarantee Scheme on Contributions of agriculture to GDP. Commercial banks loans to agriculture showed positive and significant effect on Contributions of agriculture to GDP within the reference period. The coefficient of multiple determinations explained the variation in the dependent variable jointly explained by the independent variables. The study recommend that there should be increase in the amount which the agricultural credit guarantee scheme inject into the sector on annual basis and proper supervisory measures should be constituted in order to ensure efficient application and use of the money.

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Impact of Commercial Banksâ Credit on Agricultural Productivity in Nigeria (Time Series Analysis 1980 - 2013)

Cited by 17 publications

References 0 publications

The nexus between agricultural production and agricultural loans for banking sector groups in Turkey

The nexus between agricultural production and agricultural loans for banking sector groups in Turkey

Effect of bank credit on agricultural gross domestic product

Effect of Agricultural Financing on the Performance of Agricultural Sector in Nigeria

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Impact of Commercial Banksâ Credit on Agricultural Productivity in Nigeria (Time Series Analysis 1980 - 2013)

Cited by 17 publications

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The nexus between agricultural production and agricultural loans for banking sector groups in Turkey

The nexus between agricultural production and agricultural loans for banking sector groups in Turkey

Effect of bank credit on agricultural gross domestic product

Effect of Agricultural Financing on the Performance of Agricultural Sector in Nigeria

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Impact of Commercial Banksâ Credit on Agricultural Productivity in Nigeria (Time Series Analysis 1980 - 2013)