An Empirical Analysis of the Impact of Exchange Rate on Agriculture in Nigeria

Abstract

This study investigates the relationship between exchange rate and agricultural activity based on data collected between 1999 and 2016. The study found a significant positive relationship between exchange rate between exchange rates and activity in the agricultural sector using real and nominal values. A higher or weaker exchange rate correlated with similarly with greater activity within the sector. This study therefore recommended that the government should take advantage of weaker exchange rates that make Nigerian agricultural produce cheaper and increase investment in the sector to reap the benefits as the agricultural sector can potential be a source of local and foreign income. This can be a major step in reviving the sector.

Keywords: Exchange Rate, Agriculture, Crops, Livestock, Forestry, Fishing, Monetary Policy, Nigeria, Africa.

DOI: 10.7176/JESD/10-22-18

Publication date: November 30^th 2019