Raging Poverty and Agricultural Output in Nigeria: An Empirical Investigation

Abstract

The contribution of agriculture to poverty reduction is a well-known fact following the experience of certain economies around the world. Majority of these economies falls within the developed countries where a substantial percentage of their agricultural products is imported from developing nations. In this light, as Nigeria is an agrarian economy with increasing level of poverty, this study empirically investigates the impact of agricultural sector on poverty reduction in the country over the period 1986 to 2012. Among econometric techniques employed for the research, the error correction mechanism (ECM) model reveals that food production index and government spending had negative impact on poverty headcount ratio in the country.

Keywords: Agriculture; Poverty headcount ratio; food production index; GDP per capita; ECM; Nigeria