Effect of Foreign Agricultural Aid and Corruption on Agricultural Growth in Nigeria (2002-2013).

Abstract

This study examines the effect of Foreign Agricultural Aid and Governance on Agricultural Growth in Nigeria between 2002 and 2013. Agricultural growth (proxied as agricultural GDP) was specified as a function of factors such as Foreign Direct Investment, Foreign Agricultural Aid, Land, Real Exchange rate, Control of corruption, Rule of Law, Governance, Population, Government Expenditure, Human capital and Inflation. Augmented-Dickey Fuller (ADF) unit root test was used to check the unit root properties of the variables, while quantitative estimates were based on Ordinary Least Square (OLS) modeling. The study finds that, after controlling for other factors, foreign Agricultural aid and Government Expenditure significantly affect agricultural growth while Corruption has a negative and significant effect on Agricultural growth in Nigeria. These findings suggest that while foreign agricultural aid could be a driver of growth in the Nigerian agricultural sector if well managed, Corruption will continue to hinder the goal of sustainable agricultural growth if not addressed.

Keywords: Agricultural Aid, Corruption, Agricultural Growth, Nigeria