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Econometric Analysis of the Nexus of Exchange Rate Deregulation and Agricultural Share of Gross Domestic Product in Nigeria

Author

Listed:
  • Oyinbo, O.
  • Rekwot, G. Z.

Abstract

This study examined the relationship between exchange rate deregulation and the agricultural share of gross domestic product in Nigeria from an econometric perspective using time series data. The data were analysed using augmented dickey fuller unit root test, unrestricted vector autoregression and pairwise granger causality. The results of the data analysis revealed the existence of unidirectional causality from exchange rate to agricultural share of gross domestic production in Nigeria and this implies that market driven exchange rate policy has been significant in influencing the trend in agricultural share of gross domestic production in Nigeria. However, it is recommended that the monetary authority of Nigeria should closely monitor the movement of the market driven exchange rate so that exchange rate deregulation does not become counterproductive through unhealthy price distortions on agricultural production, international trade and foreign direct investment in the agricultural sector of Nigeria’s economy.

Suggested Citation

  • Oyinbo, O. & Rekwot, G. Z., 2014. "Econometric Analysis of the Nexus of Exchange Rate Deregulation and Agricultural Share of Gross Domestic Product in Nigeria," AGRIS on-line Papers in Economics and Informatics, Czech University of Life Sciences Prague, Faculty of Economics and Management, vol. 6(1), pages 1-7.
    • Handle: RePEc:ags:aolpei:167098
    DOI: 10.22004/ag.econ.167098
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    References listed on IDEAS

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    Cited by:

    1. Adekunle, Wasiu & Ndukwe, Innocent, 2018. "The Impact of Exchange Rate Dynamics on Agricultural Output Performance in Nigeria," MPRA Paper 87755, University Library of Munich, Germany.
    2. Fredrick Ikpesu & Abraham Emmanuel Okpe, 2019. "Capital inflows, exchange rate and agricultural output in Nigeria," Future Business Journal, Springer, vol. 5(1), pages 1-8, December.
    3. Okunlola, Olalekan C. & Akinlo, Enisan A., 2021. "The Impact of Export Promotion Schemes on Agricultural Growth in Nigeria," African Journal of Economic Review, African Journal of Economic Review, vol. 9(1), January.

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