Revisiting the economic growth and agriculture nexus in Nigeria: Evidence from asymmetric cointegration and frequency domain causality approaches

Abstract

The contribution of different agricultural subsectors to economic growth in Nigeria is investigated and further suggests policy implications for investing in each of these subsectors. To this end, Johansen cointegration test and Gregory–Hansen test for cointegration with regime shift, vector error correction model (VECM), dynamic ordinary least squares (DOLS), fully modified ordinary least squares (FMOLS), Granger causality, and frequency domain causality test are employed for data from 1981 to 2016. This paper further highlights the long and causal dynamics between the selected agricultural subsector, namely forestry, crop production, fishery and livestock, and economic growth. Findings from time and frequency domain causality tests indicate a one‐way causality running from various subsectors of agriculture to economic growth in Nigeria, meaning how various subsectors of agriculture are important for predicting economic growth. In addition, there is 54% speed of adjustment from the error correction model, suggesting a need for diversification of the economy into the agricultural sector as a means for sustainable economic growth in the face of the continuous plunge in the global oil price. In the long‐run, the effect of forestry, crop production, and fishery on economic growth is statistically significant and positive. These outcomes have inherent policy implication(s), which are elucidated in the concluding section.

Does public debt matter for human capital development? Evidence from Nigeria

“…This study investigated the impact of public debt on human capital Lastly, to create a buffer against the cyclical impact of oil price volatility (which is the primary source of government revenue, and its fluctuations are often cited as the reason for borrowing), the government should put economic diversification into action. Without a doubt, the government continues to pay lip service to the diversification campaign (Agboola et al, 2020;Dimnwobi et al, 2017;Goshit & Terese, 2020;Nathaniel & Bekun, 2020;Nwokoye, Igbanugo & Dimnwobi, 2020). Diversifying away from natural resource dependency is an alternative investment and competitiveness strategy (Dimnwobi et al, 2021;Nwokoye et al, 2022).…”

Impact of Agricultural Production on Economic Growth in Zimbabwe

“…There is a bountiful amount of research focusing on establishing the impact of agriculture on economic growth in developing economies. These studies include the works of Ansari, Rashid, and Alam (2022), Agboola et al (2022), Uddin, Rahman, and Majumder (2022), Oyinbo and Rekwot (2014), Jatuporn et al (2011), Awokuse and Xie (2015), Odetola and Etumnu (2013), Izuchukwu (2011), Sertoglu, Ugural, andBekun (2017), Awan and Aslam (2015), Raza, Ali, and Mehboob (2012), Awokuse (2009), Moussa (2018) and Uddin (2015). Whether a study was investigating the impact of agriculture on growth or causal direction between agriculture production and growth, the prime conclusion for all of them was that agriculture is of paramount importance regarding the economic growth of these developing countries.…”

“…The effect of agriculture production on the economic growth of Nige-ria has also been widely researched. Literature based on Nigeria only includes the works of Agboola et al (2022), Oyinbo and Rekwot (2014), Odetola and Etumnu (2013), Izuchukwu (2011), andSertoglu, Ugural, andBekun (2017). One thing that these studies are congruent about is that agriculture has a significant positive effect towards the Nigerian economic growth.…”

Modeling the Impact of Cotton Production on Economic Development in Benin: A Technological Innovation Perspective

“…In contrast, some agricultural products, such as coffee and sugarcane, demonstrate the reverse effect (Urmi Pattanayak and Minati Mallick, 2019). In support of agriculture's role in economic growth, (Agboola et al, 2020) explained unidirectional causality from various sub-sectors of agriculture such as forestry, agricultural production, fisheries, and life stock to economic growth.…”