IDEAS home Printed from https://ideas.repec.org/a/ags/ijfaec/163705.html
   My bibliography  Save this article

Examination Of Empirical Relationships Between Industrial Activities And Agricultural Policy Outputs In Nigeria (1970-2012)

Author

Listed:
  • Akpan, Sunday Brownson
  • Udoka, Samuel James
  • Okon, Uwemedimo Eyo

Abstract

The study investigated relationships between agricultural policy output (proxy by the agricultural productivity index, agricultural GDP/total GDP and crop productivity index) and output of industrial sector (proxy by the industrial capacity utilization rate) from 1970 to 2012 period in Nigeria. The study employed time series variables obtained from the Central Bank of Nigeria (CBN), National Bureau of Statistics and Food and Agricultural Organization (FAO). Augmented Dickey-Fuller unit root test was conducted on the specified time series, and the result showed that all non-growth rate series were integrated of order one, while growth rate series were stationary at level. The two-step Engle Granger method was employed to test for the presence of co-integration among specified variables. The result revealed that variables were not co-integrated. To avoid spurious regression, the specified models for non-growth rate series were estimated at first difference of the log variables. The empirical result revealed that, the industrial activities Granger cause crop activities in Nigeria. Also, the industrial activity has insignificant relationship with agricultural productivity indices in Nigeria. The same result was also obtained for industrial activities and agricultural GDP/total GDP. However, the result further revealed that, the industrial activity has significant negative correlation with the crop productivity index in Nigeria. These imply that, agricultural production had not played significant role in industrial development in Nigeria. This result suggests that, there is no significant impact of the backward integration policy of the agricultural sector on industrial sector in Nigeria. In addition, the result revealed that, agricultural policies during liberalization era (1986 - 2012) shifted the coefficient of the industrial activities positively. Therefore, it is recommended that the agricultural production in Nigeria should be boosted so as to generate sufficient demand and raw materials for the industrial sector. Agricultural policy of the liberalization period should be promoted as an alternative way to bring on positive growth in industrial activities and hence economic development in Nigeria.

Suggested Citation

  • Akpan, Sunday Brownson & Udoka, Samuel James & Okon, Uwemedimo Eyo, 2014. "Examination Of Empirical Relationships Between Industrial Activities And Agricultural Policy Outputs In Nigeria (1970-2012)," International Journal of Food and Agricultural Economics (IJFAEC), Alanya Alaaddin Keykubat University, Department of Economics and Finance, vol. 2(01), pages 1-9, January.
    • Handle: RePEc:ags:ijfaec:163705
    DOI: 10.22004/ag.econ.163705
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/163705/files/vol2.no1.pp13.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.163705?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. Murphy, Kevin M & Shleifer, Andrei & Vishny, Robert W, 1989. "Industrialization and the Big Push," Journal of Political Economy, University of Chicago Press, vol. 97(5), pages 1003-1026, October.
    2. Chenery, Hollis B., 1984. "Economic Structure and Performance," Elsevier Monographs, Elsevier, edition 1, number 9780126800609 edited by Syrquin, Moshe & Taylor, Lance & Westphal, Larry E..
    3. Granger, C W J, 1969. "Investigating Causal Relations by Econometric Models and Cross-Spectral Methods," Econometrica, Econometric Society, vol. 37(3), pages 424-438, July.
    4. Adelman, Irma, 1984. "Beyond export-led growth," World Development, Elsevier, vol. 12(9), pages 937-949, September.
    5. Saikia, Dilip, 2009. "Agriculture-Industry Interlinkages: Some Theoretical and Methodological Issues in the Indian Context," MPRA Paper 27820, University Library of Munich, Germany, revised 26 Nov 2010.
    6. Koo, Won W. & Lou, Jianqiang, 1997. "The Relationship Between The Agricultural And Industrial Sectors In Chinese Economic Development," Agricultural Economics Reports 23176, North Dakota State University, Department of Agribusiness and Applied Economics.
    7. Adelman, Irma, 1984. "Beyond export-led growth," CUDARE Working Paper Series 309, University of California at Berkeley, Department of Agricultural and Resource Economics and Policy.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Sayef Bakari & Sofien Tiba, 2022. "Agricultural Exports, Agricultural Imports And Economic Growth In China," Journal of Smart Economic Growth, , vol. 7(3), pages 35-61, September.

    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. Murat Arsel & Servaas Storm, 2015. "Forum 2015," Development and Change, International Institute of Social Studies, vol. 46(4), pages 666-699, July.
    2. Storm, Servaas, 1997. "Domestic constraints on export-led growth: a case-study of India," Journal of Development Economics, Elsevier, vol. 52(1), pages 83-119, February.
    3. AKBAR Mohammad & NAQVI Zareen Fatima, 2010. "Are Exports an Engine of Growth in Pakistan?," EcoMod2003 330700004, EcoMod.
    4. Eze Simpson Osuagwu, 2020. "Empirical Evidence of a Long-Run Relationship Between Agriculture and Manufacturing Industry Output in Nigeria," SAGE Open, , vol. 10(1), pages 21582440198, January.
    5. Ioanna Apostolidou & Achilleas Kontogeorgos & Anastasios Michailidis & Efstratios Loizou, 2014. "The Role of Agriculture in Economic Growth: A Comparison of Mediterranean and Northern Views in Europe," International Journal of Business and Economic Sciences Applied Research (IJBESAR), Democritus University of Thrace (DUTH), Kavala Campus, Greece, vol. 7(3), pages 81-102, December.
    6. DELL'ANNO, Roberto & VILLA, Stefania, 2012. "Growth in Transition Countries: Big Bang versus Gradualism," CELPE Discussion Papers 122, CELPE - CEnter for Labor and Political Economics, University of Salerno, Italy.
    7. Arndt, Channing & Schiller, Rico & Tarp, Finn, 2001. "Grain transport and rural credit in Mozambique: solving the space-time problem," Agricultural Economics, Blackwell, vol. 25(1), pages 59-70, June.
    8. Irma Adelman, 2017. "Confessioni di un'inguaribile romantica (Confessions of an incurable romantic)," Moneta e Credito, Economia civile, vol. 70(279), pages 239-263.
    9. Derek Headey, 2008. "The Principal Components of Growth in the Less Developed Countries," Kyklos, Wiley Blackwell, vol. 61(4), pages 568-598, November.
    10. Adelman, Irma & Berck, Peter, 1990. "Food security policy in a stochastic world," Journal of Development Economics, Elsevier, vol. 34(1-2), pages 25-55, November.
    11. Taylor, J. Edward & Yunez-Naude, Antonio & Hampton, Steve, 1999. "Agricultural Policy Reforms and Village Economies: A Computable General-Equilibrium Analysis from Mexico," Journal of Policy Modeling, Elsevier, vol. 21(4), pages 453-480, July.
    12. de Janvry, Alain & Sadoulet, Elisabeth, 2020. "Using agriculture for development: Supply- and demand-side approaches," World Development, Elsevier, vol. 133(C).
    13. Mozumdar, Lavlu, 2012. "Agricultural productivity and food security in the developing world," Bangladesh Journal of Agricultural Economics, Bangladesh Agricultural University, vol. 35(01-2).
    14. Briones, Roehlano & Felipe, Jesus, 2013. "Agriculture and Structural Transformation in Developing Asia: Review and Outlook," ADB Economics Working Paper Series 363, Asian Development Bank.
    15. Fujita, Koichi, 2010. "The Green Revolution and Its Significance for Economic Development," Working Papers 17, JICA Research Institute.
    16. de Janvry, Alain, 2009. "Leonard K. Elmhirst Lecture: Agriculture for development: New paradigm and options for success," 2009 Conference, August 16-22, 2009, Beijing, China 53202, International Association of Agricultural Economists.
    17. Langarudi, Saeed P. & Maxwell, Connie M. & Bai, Yining & Hanson, Austin & Fernald, Alexander, 2019. "Does Socioeconomic Feedback Matter for Water Models?," Ecological Economics, Elsevier, vol. 159(C), pages 35-45.
    18. Suri, Tavneet & Boozer, Michael A. & Ranis, Gustav & Stewart, Frances, 2011. "Paths to Success: The Relationship Between Human Development and Economic Growth," World Development, Elsevier, vol. 39(4), pages 506-522, April.
    19. Melia, Elvis, 2019. "The impact of information and communication technologies on jobs in Africa: a literature review," IDOS Discussion Papers 3/2019, German Institute of Development and Sustainability (IDOS).
    20. Mesquita Moreira, Mauricio, 2007. "Fear of China: Is There a Future for Manufacturing in Latin America?," World Development, Elsevier, vol. 35(3), pages 355-376, March.

    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:ijfaec:163705. 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/iiaaktr.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.