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Agricultural Financing, Agricultural Output Growth and Employment Generation in Nigeria

Author

Listed:
  • Anthony Orji

    (University of Nigeria, Nsukka, Nigeria)

  • Jonathan Emenike Ogbuabor

    (University of Nigeria, Nsukka, Nigeria)

  • Jennifer Nkechi Alisigwe

    (University of Nigeria, Nsukka, Nigeria)

  • Onyinye Imelda Anthony-Orji

    (University of Nigeria, Nsukka, Nigeria)

Abstract

This study investigates the impact of agricultural financing and agricultural output growth on employment generation in Nigeria from 1981 to 2017. The study adopts the framework of the Auto Regressive Distributed Lag (ARDL) Model for analysis. The empirical results show that while agricultural financing increases employment generation in both the short run and long run, the lag of agricultural output growth increases employment generation mainly in the short run. Other variables found to have significant effect on employment generation were price and agricultural output while labor force population, wages and aggregate expenditure were insignificant. The study concludes that policy makers should endeavor to see that every fund allocated for a specific agricultural schemes and interventions should be fully utilized for its purpose. To increase employment opportunities, there should be careful monitoring of the implementation of each scheme and policy to realize their specific objectives.

Suggested Citation

  • Anthony Orji & Jonathan Emenike Ogbuabor & Jennifer Nkechi Alisigwe & Onyinye Imelda Anthony-Orji, 2021. "Agricultural Financing, Agricultural Output Growth and Employment Generation in Nigeria," European Journal of Business Science and Technology, Mendel University in Brno, Faculty of Business and Economics, vol. 7(1), pages 74-90.
    • Handle: RePEc:men:journl:v:7:y:2021:i:1:p:74-90
    DOI: 10.11118/ejobsat.2021.002
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    References listed on IDEAS

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    1. Eze, Christopher C. & Lemchi, J.I. & Ugochukwu, Albert I. & Eze, V.C. & Awulonu, C.A.O. & Okon, A.X., 2010. "Agricultural Financing Policies And Rural Development In Nigeria," 84th Annual Conference, March 29-31, 2010, Edinburgh, Scotland 91677, Agricultural Economics Society.
    2. Johansen, Soren & Juselius, Katarina, 1990. "Maximum Likelihood Estimation and Inference on Cointegration--With Applications to the Demand for Money," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 52(2), pages 169-210, May.
    3. Anthony Orji & Jonathan E. Ogbuabor & Onyinye I. Anthony-Orji & Jennifer Nkechi Alisigwe, 2020. "Agricultural Financing and Agricultural Output Growth in Developing Economies: Any Causal Linkage in Nigeria?," International Journal of Finance, Insurance and Risk Management, International Journal of Finance, Insurance and Risk Management, vol. 10(2), pages 34-43.
    4. Hayami, Yujiro & Kawagoe, Toshihiko & Morooka, Yoshinori & Siregar, Musdjidin, 1988. "Income and employment generation from agricultural processing and marketing: The case of soybean in Indonesia," Agricultural Economics, Blackwell, vol. 1(4), pages 327-339, January.
    5. Jonathan E. Ogbuabor & Cynthia A. Nwosu, 2017. "The Impact of Deposit Money Bank's Agricultural Credit on Agricultural Productivity in Nigeria: Evidence from an Error Correction Model," International Journal of Economics and Financial Issues, Econjournals, vol. 7(2), pages 513-517.
    6. Briones, Roehlano M., 2013. "Agriculture, Rural Employment, and Inclusive Growth," Discussion Papers DP 2013-39, Philippine Institute for Development Studies.
    7. Donnellan, Trevor & Hanrahan, Kevin, 2016. "Output and employment growth in primary agriculture and the food processing sector across the EU: Are some doing better than others?," 160th Seminar, December 1-2, 2016, Warsaw, Poland 249764, European Association of Agricultural Economists.
    8. Bodiseowei C. Obudah & Steve S. Tombofa, 2016. "Agricultural financing, output and macroeconomic growth," African Journal of Economic and Sustainable Development, Inderscience Enterprises Ltd, vol. 5(4), pages 287-301.
    9. Olu Ajakaiye & Afeikhena T. Jerome & David Nabena & Olufunke A. Alaba, 2015. "Understanding the relationship between growth and employment in Nigeria," WIDER Working Paper Series wp-2015-124, World Institute for Development Economic Research (UNU-WIDER).
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    Cited by:

    1. Timothy Ayomitunde Aderemi & Adedayo Mathias Opele & Johnson Ifeanyi Okoh & Mamdouh Abdulaziz Saleh Al‐Faryan, 2023. "An econometric analysis of small‐ and medium‐scale enterprises and employment creation in Nigeria," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 44(3), pages 1624-1633, April.

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    More about this item

    Keywords

    agricultural financing; agricultural output; growth; employment;
    All these keywords.

    JEL classification:

    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • J43 - Labor and Demographic Economics - - Particular Labor Markets - - - Agricultural Labor Markets
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • Q13 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Markets and Marketing; Cooperatives; Agribusiness
    • Q14 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Finance

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