IDEAS home Printed from https://ideas.repec.org/a/ags/ajosrd/197994.html
   My bibliography  Save this article

Econometric Analysis of Food Crops’ Response to Climate Variability and Macroeconomic Policies’ Reforms in Nigeria (1978-2009)

Author

Listed:
  • Onoja, Anthony O.
  • Ajie, E.N.

Abstract

This study investigated the extent to which climate variability (proxied by rainfall variability) and macroeconomic policies influenced food crop output in Nigeria. It used time series data obtained from Central Bank of Nigeria and National Bureau of Statistics (1978-2009). Four functional forms of OLS models were tried. The Cobb-Douglas function was finally adopted based on standard econometric model selection criteria and diagnosis. Chow test was used to test the hypotheses of the study. It was found that rainfall variability influenced crop output negatively. Climatic factor, loans guaranteed by Agricultural Credit Guarantee Scheme Fund and lending rate were all statistically significant drivers of crop output in the economy at p<0.05, p<0.01 and p<0.05 respectively. Their elasticities were respectively 4.01%, 0.52% and 0.98%. No structural difference between the economic reform era and the preceding era‟s regression coefficients was found. Programmes to stem corruption and loan diversion; subsidization of agricultural credit and climate change adaptation capacity building programmes were recommended to bring about sustainable food security in the country.

Suggested Citation

  • Onoja, Anthony O. & Ajie, E.N., 2012. "Econometric Analysis of Food Crops’ Response to Climate Variability and Macroeconomic Policies’ Reforms in Nigeria (1978-2009)," Asian Journal of Agriculture and Rural Development, Asian Economic and Social Society (AESS), vol. 2(03), pages 1-11, September.
    • Handle: RePEc:ags:ajosrd:197994
    DOI: 10.22004/ag.econ.197994
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/197994/files/19-128-AJARD-487-497.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.197994?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Garba, P.K., 2000. "An Analysis of the Implementation and Stability of Nigerian Agricultural Policies, 1970-1993," Papers 101, African Economic Research Consortium.
    2. Luc Christiaensen, 2009. "Revisiting the Global Food Architecture. Lessons from the 2008 Food Crisis," Review of Business and Economic Literature, KU Leuven, Faculty of Economics and Business (FEB), Review of Business and Economic Literature, vol. 0(3), pages 3345-3361.
    3. repec:aer:wpaper:57 is not listed on IDEAS
    4. Mogues, Tewodaj & Morris, Michael & Freinkman, Lev & Adubi, Abimbola & Simeon, Ehui & Nwoko, Chinedum & Taiwo, Olufemi & Nege, Caroline & Okonji, Patrick & Chete, Louis, 2008. "Agricultural public spending in Nigeria:," IFPRI discussion papers 789, International Food Policy Research Institute (IFPRI).
    5. Idachaba, Francis Sulemanu, 1980. "Agricultural research policy in Nigeria:," Research reports 17, International Food Policy Research Institute (IFPRI).
    6. Kwanashie, M & Garba, A-G & Ajilima, I, 1997. "Policy Modelling in Agriculture : Testing the Response of Agriculture to Adjustment Policies in Nigeria," Papers 57, African Economic Research Consortium.
    7. Amin, A.A., 1996. "The Effects of Exchange Rate Policy on Cameroon's Agricultural Competitiveness," Papers 42, African Economic Research Consortium.
    8. repec:aer:wpaper:78 is not listed on IDEAS
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. repec:aer:wpaper:256 is not listed on IDEAS
    2. Schiff, Maurice*Valdes, Alberto, 1998. "Agriculture and the macroeconomy," Policy Research Working Paper Series 1967, The World Bank.
    3. Cornelius O. Okorie & Christopha C. Arua & Felix M. Nwankwo, 2023. "Nigerian State and Rent-Dependent Economy: An Exposition of Vision 2020 Policy Strategies for Future Sustainable Development," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 7(3), pages 1330-1345, March.
    4. Olomola, Aderbigbe & Mogues, Tewodaj & Olofinbiyi, Tolulope & Nwoko, Chinedum & Udoh, Edet & Alabi, Reuben Adeolu & Onu, Justice & Woldeyohannes, Sileshi, 2014. "Analysis of agricultural public expenditures in Nigeria: Examination at the federal, state, and local government levels:," IFPRI discussion papers 1395, International Food Policy Research Institute (IFPRI).
    5. Adekunle, Wasiu & Ndukwe, Innocent, 2018. "The Impact of Exchange Rate Dynamics on Agricultural Output Performance in Nigeria," MPRA Paper 87750, University Library of Munich, Germany.
    6. Lenis Saweda O. Liverpool-Tasie, 2017. "Is fertiliser use inconsistent with expected profit maximization in sub-Saharan Africa? “Evidence from Nigeria”," Journal of Agricultural Economics, Wiley Blackwell, vol. 68(1), pages 22-44, February.
    7. Charline Uwilingiyimana & Abdou Kâ Diongue, 2020. "Rwanda Currency Market Risk Analysis: Evidence From Asymmetry Effects," Journal of Statistical and Econometric Methods, SCIENPRESS Ltd, vol. 9(2), pages 1-2.
    8. Aderibigbe Olomola & Tewodaj Mogues & Tolulope Olofinbiyi & Chinedum Nwoko & Edet Udoh & Reuben Alabi & Justice Onu & Sileshi Woldeyohannes, 2014. "Agriculture Public Expenditure Review at the Federal and Subnational Levels in Nigeria (2008-12)," World Bank Publications - Reports 22345, The World Bank Group.
    9. D'Silva, Brian C. & Raza, M. Rafique, 1983. "Ewuity Considerations in Planning and Implementing Rural Development Projects in Nigeria: An Evaluation of the Funtua Project," 1983 Occasional Paper Series No. 3 197288, International Association of Agricultural Economists.
    10. Tony Addison & Channing Arndt & Finn Tarp, 2011. "The Triple Crisis and the Global Aid Architecture," African Development Review, African Development Bank, vol. 23(4), pages 461-478, December.
    11. Apata Temidayo Gabriel, 2019. "Public spending mechanisms and gross domestic product (GDP) growth in the agricultural sector (1970–2016): Lessons for Nigeria from agricultural policy progressions in China," Bulletin of Geography. Socio-economic Series, Sciendo, vol. 44(44), pages 57-72, June.
    12. Christopher L. Gilbert & Simone Pfuderer, 2014. "The financialization of food commodity markets," Chapters, in: Raghbendra Jha & Raghav Gaiha & Anil B. Deolalikar (ed.), Handbook on Food, chapter 6, pages 122-148, Edward Elgar Publishing.
    13. Oladiran Afolabi* & Dr. Badmus Bidemi G., 2019. "Oil Wealth, Democratic Governanace and Development in Nigeria: The Predicaments of a Rentier State," Sumerianz Journal of Social Science, Sumerianz Publication, vol. 2(6), pages 61-67, 06-2019.
    14. Mogues, Tewodaj & Yu, Bingxin & Fan, Shenggen & Mcbride, Linden, 2012. "The impacts of public investment in and for agriculture: Synthesis of the existing evidence," IFPRI discussion papers 1217, International Food Policy Research Institute (IFPRI).
    15. György Iván, Neszmélyi, 2014. "The motivations for the diversification of the Nigerian economy focusing on sustainable agriculture," APSTRACT: Applied Studies in Agribusiness and Commerce, AGRIMBA, vol. 8(1), pages 1-8.
    16. Wouter Zant, 2014. "Do Organic Inputs in African Subsistence Agriculture Raise Productivity? Evidence from Plot Data of Malawi Household Surveys," Tinbergen Institute Discussion Papers 14-114/V, Tinbergen Institute.
    17. Walkenhorst, Peter, 2007. "Distortions to Agricultural Incentives in Nigeria," MPRA Paper 10055, University Library of Munich, Germany.
    18. Liverpool-Tasie, Lenis Saweda O. & Ogunleye,Wale Olatunji & Omonona,Bolarin Titus & Sanou,Awa & Liverpool-Tasie, Lenis Saweda O. & Ogunleye,Wale Olatunji & Omonona,Bolarin Titus & Sanou,Awa, 2015. "Is increasing inorganic fertilizer use in Sub-Saharan Africa a profitable proposition ? evidence from Nigeria," Policy Research Working Paper Series 7201, The World Bank.
    19. Biggs SD. & Clay EJ., 1983. "Generation and diffusion of agricultural technology: a review of theories and experiences," ILO Working Papers 992260213402676, International Labour Organization.
    20. Victalice Ngimanang Achamoh & Francis Menjo Baye, 2016. "Implications Of Foreign Direct Investment, Financial Development And Real Exchange Rate For Economic Growth In Cameroon," EuroEconomica, Danubius University of Galati, issue 1(35), pages 149-163, may.
    21. Douglason Godwin Omotor & Christopher O. Orubu & Emmanuel Inoni, 2009. "Policy Reforms And Agricultural Exports In Nigeria: An Empirical Analysis," The Singapore Economic Review (SER), World Scientific Publishing Co. Pte. Ltd., vol. 54(04), pages 589-603.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:ajosrd:197994. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/aesstea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.