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Long and Short Run Dynamics of Agricultural and Petroleum Sectors in the Economic Growth of Nigeria

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  • Okunola Akinbode Michael

Abstract

This study examined the economic relationship among agriculture and petroleum sectors and growth of Nigeria’s economy as well as the effects of these two key sectors on the economic growth. The Bound (ARDL) test which was used to examine the long-run relationship among the variables revealed that there is a long-run relationship among agricultural and petroleum sectors and economic growth. In the short run, both sectors have positive significant relationship with the economic growth. While for every 1% change in agricultural productivity there is about 60.89% change on economic growth, petroleum sector had about 37.07% change effect. Thus, agriculture contributes more than the petroleum sector in the short run. In the long-run, both sectors also have positive relationship with economic growth. Agriculture in the long-run also contribute more than the petroleum sector. While a 1% change in agricultural productivity effects a 53.49% increase in economic growth, petroleum sector increases GDP by 43.71%. However, in the long-run, while agriculture is significant at 5%, petroleum sector is significant at 10%. In conclusion, the positive relationship of both sectors with economic growth shows that they are rather economically complimentary than competitive that the actions and inactions of the government have made them look.

Suggested Citation

  • Okunola Akinbode Michael, 2017. "Long and Short Run Dynamics of Agricultural and Petroleum Sectors in the Economic Growth of Nigeria," Romanian Economic Journal, Department of International Business and Economics from the Academy of Economic Studies Bucharest, vol. 20(64), pages 13-27, June.
    • Handle: RePEc:rej:journl:v:20:y:2017:i:64:p:13-27
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    References listed on IDEAS

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    4. Oyakhilomen, Oyinbo & Zibah, Rekwot Grace, 2014. "Agricultural Production and Economic Growth in Nigeria: Implication for Rural Poverty Alleviation," Quarterly Journal of International Agriculture, Humboldt-Universitaat zu Berlin, vol. 53(3), pages 1-17, August.
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    Cited by:

    1. Md. Sayemul Islam & Md. Asraf Mahmud Hasif & Nishat Sultana Ema & Hasneen Jahan, 2020. "Role of Agriculture and Manufacturing Sectors in the Economic Growth of Bangladesh and India: An ARDL Approach," Romanian Economic Journal, Department of International Business and Economics from the Academy of Economic Studies Bucharest, vol. 23(78), pages 82-92, December,.

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    More about this item

    Keywords

    Agriculture; Petroleum; ARDL; growth; Nigeria;
    All these keywords.

    JEL classification:

    • Q13 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Markets and Marketing; Cooperatives; Agribusiness
    • Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy; Animal Welfare Policy
    • Q32 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - Exhaustible Resources and Economic Development
    • Q38 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - Government Policy (includes OPEC Policy)

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