An Empirical Analysis of the Contribution of Agricultural Sector to Nigerian Gross Domestic Product: Implications for Economic Development

Abstract

The main focus of this study was Nigerian economy and agricultural contribution. The approach used for this research was mainly desk study, data collection from secondary origin. Internet resources were also consulted. Data available were analyzed using tools such as descriptive statistics and inferential analysis such unit root test- stationarity test, co integration regression and error correction model (ECM) were performed. Generally, the descriptive statistics shown Nigerian economy had grown over the period of 32 years and this is obvious in the wider gap between the minimum and maximum values of the GDP and agricultural output respectively. The unit root test results shows that the GDP and Agric. Output variables are stationary at level while inflation is stationary at first difference. The coefficient of R² was about 0.96 and the coefficient of agricultural output was found positive and statistically significant at 1% level. The coefficient of ECM (u-1) was significant at 1% level and this implies that GDP co-integrated with agricultural output and inflation.

Keywords:Economic Development, Nigerian Gross Domestic Product and Agricultural Sector