Commercial Bank Credit and Agricultural Output in Nigeria.
ABSTRACT
This research work examined the impact of commercial Bank credit on Agricultural output in Nigeria using Macroeconomic variables (commercial bank credit and agricultural output).
The broad objective of the study is to investigate the extent to which commercial bank credit had supported agricultural output Nigeria.
The specific objectives are: (i) to determine the impact of commercial banks credit on agricultural output in Nigeria, and (i) to determine the impact of agricultural output on economic growth in Nigeria.
The methodology adopted for the study was ordinary least square (OLs) involving the student’s T-test, to test the significance of the individual parameter estimate, the F-test, to test the significance of the entire regression plane, the R2 and Adjusted R2, to test the joint influence of the explanatory variables on the dependent variable.
Finally, Durbin-Watson’s statistics (DW) was used to check the presence or absence of serial correlation on the data.
After the regression, the result shows that: firstly, agricultural output as well as commercial bank credit to agriculture and real interest rate contributed a lot to economic growth in Nigeria. Secondly there is a general agreement that Nigeria agricultural sector is grossly underfunded.
TABLE OF CONTENTS
TITLE PAGE……..i
APPROVAL PAGE………ii
DEDICATION…….iii
ACKNOWLEDGEMENT……iv
ABSTRACT…..vi
TABLE OF CONTENT……viii
CHAPTER ONE INTRODUCTION
- BACKGROUND TO THE STUDY…….1
- STATEMENT OF PROBLEM…..6
- OBJECTIVE OF THE STUDY………9
- HYPOTHESIS OF THE STUDY……9
- SIGNIFICANCE OF THE STUDY…..10
- SCOPE AND LIMITATION OF HE STUDY…..10
CHAPTER TWO REVIEW OF RELATED LITERATURE
2.1 THEORITICAL L ITERATURE….12
2.1.1 THE PRE-REQUISITE THESIS VERSUS THE CONCURRENCE THESIS……….14
2.2 FINANCING AGRICULTURE IN NIGERIA ……18
2.1.1 SOURCES OF AGRICULTURAL FINANCING …………………….20
2.3 COMMERCIAL BANK CREDIT AND AGRICULTURAL OUTPUT…… 23
2.4 EMPIRICAL LITERATURE……..28
CHAPTER THREE RESEARCH METHODOLOGY
3.1 MODEL SPECIFICATION ……….34
3.2 ESTIMATION PROCEDURE……36
3.3 EVALUATION TECHNIQUES……..37
3.4 DATA REQUIRED AND SOURCES…..41
CHAPTER FOUR DATA PRESENTATION AND ANALYSIS
4.1 UNIT ROOT TEST…………43
4.2 CO INTEGRATION TEST……44
4.3 PRESENTATION AND INTERPRESTATION OF RESULT…..46
4.3:1 INTERPRESTATION OF REGRSSION RESULT..47
4.4 EVALUATION OF EMPIRICAL RESULT…..48
4.4:1 ECONOMIC CRITERIA (A PRIORI EXPECTATION)……48
4.4:2 STATISTICAL CRITERIA…..50
4.4:3 COEFFICIENT OF DETERMINATION (R2)…….51
4.4.4 THE T-STAISTICS……..51
4.4.5 THE F-TEST……….52
4.5. ECONOMIC CRITERIA (SECOND ORDER TEST)…53
CHAPTER FIVE SUMMARY, CONCLUSION AND RECOMMENDATION
5.1 SUMMARY……… 59
5.2 CONCLUSION ………..62
5.3 RECOMMENDATION…63
BIBLIOGRAPHY………67
APPENDIX
INTRODUCTION
As confirmed by Ugochukwu (1999:02), agriculture is the first and most thriven occupation of mankind. From its early form of wild fruits, leaf, root, snail and insect gathering, fishing and hunting, to its present mechanized and almost automated form, it has undergone a lot of development
Okah (2007:04) conceived agriculture as the cultivation of land, raising animals for the purpose of production of food for man, feed for animals, and raw materials for our industries. It also consist of croup production, forestry, livestock and fishing.
It is also essential for expansion of employment opportunity, reduction of poverty and improvement of income distribution, speeding up industrialization and easing the pressure of balance of payments disequilibrium.
The role of agriculture in transforming both the social and economic frame work of an economy cannot be over emphasized. Anyanwu (1997:213) posits that “agriculture has been the main source of gainful employment from which Nigeria nation can feed its feeding population, providing the nations industries with local raw materials and as a reliable source of government revenue.
Corroborating the above is Reynolds(1975.35) who asserts that agricultural development can promote the economic development by increasing the supply of food available for domestic consumption and releasing the labor needed for industrial employment.
BIBLIOGRAPHY
Adekanye, F. (1986). Practice of Banking. London: Collins Publishing Company.
Amechi, N.F. (2004). Model Agricultural Science. Oko: Federal Polytechnic press.
Amin, A. A. (1996). The Effect Of Exchange Rate Policy On Cameroon’s Agricultural Competitiveness. Nairobi: ARC Publishers.
Ekzie, E.S. (1997). The Elements of Banking Money Financial Institutions and Markets. Onitsha: Africana-fep Republishes.
Essang, S. & Olajide, S. (1974). Intermediate Economic Analysis. Ibadan: Aromolara Publishing Company Limited.
FOSU, K.F. (1992). The Real Exchange Rate and Ghanas Agricultural Export. Nairobi: ARC Publishers.
Garba, P.K. (2000). An Analysis of the Implementation and Stability of Nigeria Agricultural Policies. Accra: AEC Publishers.
Ijere, M.O. (1986). New perspectives in Financing Nigeria Agriculture. Benin: Dimension Publishers.
Iyoha, M. (2004). Applied Economics Second Edition. Benin: Mindex Publishing Nigeria.
Koutsoyiannis, A. (2001). Theory of Econometrics an Introductory Exposition of Economics Method. New York: Palgrive Publishing Ltd.
Nzotta, S.M. (1999). Money Banking and Finance Theory and Practice. Lagos: Intercontinental Publishing.
Obadan, I.M. (2000). Prospect for Diversification in Nigeria Export Trade. Benin: Dimension Publishers.
Be the first to comment