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Effects of Capital Flight and Its Macroeconomic Determinants in Agricultural Growth in Nigeria (1970-2013)

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  • Usman, Francis Robert
  • Arene, Chukwuemeka John

Abstract

This study empirically examines the impact of capital fight and its macroeconomic determinants on agricultural growth in Nigeria from 1970 -2013. Data generated were analyzed using Unit root test, co-integration test, regression analysis. The study result found negative and insignificant relationship(P>0.05) between total capital flight and agricultural growth; meaning that capital flight has no direct impact on agricultural growth or the impact on agricultural growth is shadowed by the other macroeconomic variables in the system. Also, the stock of gross external debt (EXD) variable showed positive and statistically significant relationship (P<0.05) with agricultural growth. The result shows that a unit change in EXD will bring about 24% change in the growth of agriculture provided other factors are kept constant. Political instability (POL) variable has negative and significant effect on agricultural growth in Nigeria. The study recommends that Nigeria’s judicious use of the income accruing from loans and Foreign Direct Investment (FDI) is paramount if Agricultural growth is to be enhanced. Furthermore, the overall peace, security of lives and property and guaranty of investment by the government is essential therefore; Government should take concerted step to improve security of life and property in the country.

Suggested Citation

  • Usman, Francis Robert & Arene, Chukwuemeka John, 2014. "Effects of Capital Flight and Its Macroeconomic Determinants in Agricultural Growth in Nigeria (1970-2013)," International Journal of Food and Agricultural Economics (IJFAEC), Alanya Alaaddin Keykubat University, Department of Economics and Finance, vol. 2(4), pages 1-20, October.
    • Handle: RePEc:ags:ijfaec:190817
    DOI: 10.22004/ag.econ.190817
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    References listed on IDEAS

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    Cited by:

    1. MOHSEN, Adel Shakeeb & CHUA, Soo Y. & CHE SAB, Che Normee, 2016. "Determinants Of Agricultural Output In Syria," Review of Agricultural and Applied Economics (RAAE), Faculty of Economics and Management, Slovak Agricultural University in Nitra, vol. 19(01), pages 1-9, March.
    2. Lionel Effiom & Emmanuel Uche & Otei Asuquo Otei, 2021. "Asymmetric effects of capital flight on domestic investment in Nigeria: evidence from non-linear autoregressive distributed lag model," SN Business & Economics, Springer, vol. 1(10), pages 1-23, October.
    3. Emmanuel Uche & Lionel Effiom, 2021. "Fighting capital flight in Nigeria: have we considered global uncertainties and exchange rate volatilities? Fresh insights via quantile ARDL model," SN Business & Economics, Springer, vol. 1(6), pages 1-22, June.

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