Agricultural Exports and Economic Growth in Nigeria (1980 – 2010)

Abstract

This paper seeks to determine if a significant long-run relationship exists between agricultural exports and economic growth in the present-day Nigeria. It would also access the long run impact of agricultural exports on growth performance in Nigeria. The study covers the periods between 1980 and 2010. The underlying models are the Export- Led Growth Hypothesis and the Neo-classical Growth Model. In the formulated model, Real Gross Domestic Product was used as the proxy for economic growth. The explanatory variables used were Gross Fixed Capital Formation, Labour force, Foreign Direct Investment and Agricultural exports. The study made use of unit root tests and Johansen Maximum Likelihood Test of Co-Integration. It was discovered that a long run equilibrium relationship exists between agricultural exports and economic growth and the relationship is elastic in nature meaning that a unit increase in agricultural exports would bring a more than proportionate increase in the Real Gross Domestic Product in Nigeria.

Keywords: Agricultural exports, economic growth, Real Gross Domestic Product