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Commercial Bank Financing And Development Of Crop Production In Nigeria

Author

Listed:
  • Kamilu Adio Saka

    (Department of Banking and Finance, The Federal Polytechnic, Ilaro.)

  • Kehinde Banjo Aladelusi

    (Department of Banking and Finance, The Federal Polytechnic, Ilaro)

Abstract

This study evaluates both short-run and long-run impacts of credit financing facilities provided by commercial banks on crop production development in Nigeria from 1981 to 2020. The study adopts ex post-facto research design and obtains data on the study variables from Central Bank of Nigeria Statistical Bulletin and World Bank Development Indicators. Autoregressive Distributed Lag (ARDL) model approach was employed as an estimation technique. The outcome of the analysis produces significant negative effect of commercial banks loans and advances on crop production development in the short run. In the long run, however, commercial banks loans and advances and labour employment in agriculture sector exert significant positive impact on crop production development in Nigeria. The researchers conclude that commercial banks credit financing significantly increase contribution of agriculture to Nigeria gross domestic product in the long-run while it reduces crop productivity in the short-run.

Suggested Citation

  • Kamilu Adio Saka & Kehinde Banjo Aladelusi, 2022. "Commercial Bank Financing And Development Of Crop Production In Nigeria," Malaysian E Commerce Journal (MECJ), Zibeline International Publishing, vol. 6(1), pages 09-13, January.
    • Handle: RePEc:zib:zbmecj:v:6:y:2022:i:1:p:09-13
    DOI: 10.26480/mecj.01.2022.09.13
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    References listed on IDEAS

    as
    1. 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.
    2. Osabohien, Romanus & Osabuohien, Evans & Ohalete, Precious, 2019. "Agricultural Sector Performance, Institutional Framework and Food Security in Nigeria," Bio-based and Applied Economics Journal, Italian Association of Agricultural and Applied Economics (AIEAA), vol. 8(2), August.
    3. Jeffrey M. Wooldridge, 2001. "Applications of Generalized Method of Moments Estimation," Journal of Economic Perspectives, American Economic Association, vol. 15(4), pages 87-100, Fall.
    4. Engle, Robert & Granger, Clive, 2015. "Co-integration and error correction: Representation, estimation, and testing," Applied Econometrics, Russian Presidential Academy of National Economy and Public Administration (RANEPA), vol. 39(3), pages 106-135.
    5. Romanus Osabohien & Evans Osabuohien & Precious Ohalete, 2019. "Agricultural Sector Performance, Institutional Framework and Food Security in Nigeria," Working Papers 19/083, European Xtramile Centre of African Studies (EXCAS).
    6. Catherine Guirkinger & Stephen R. Boucher, 2008. "Credit constraints and productivity in Peruvian agriculture," Agricultural Economics, International Association of Agricultural Economists, vol. 39(3), pages 295-308, November.
    7. Romanus Osabohien & Evans Osabuohien & Precious Ohalete, 2019. "Agricultural Sector Performance, Institutional Framework and Food Security in Nigeria," Research Africa Network Working Papers 19/083, Research Africa Network (RAN).
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