AGRICULTURAL PRICE VOLATILITY, INVESTMENT AND ECONOMIC GROWTH: EVIDENCE FROM NIGERIA

Salami Dada Kareem, Kehinde Olusegun Atoyebi, Ayoola Sunkanmi Odubunmi, Samad Arogundade Lawal

Abstract


This study empirically examines the link between agricultural investment, price of agricultural commodities and economic growth in Nigeria. This study uses the ordinary least square regression to determine the inter- connectivity between agricultural investment, price of agricultural commodities and economic growth in Nigeria. The investigations reveals that both recurrent and capital expenditure on agriculture is not the type of expenditure pattern needed to solve the problem of agricultural sector as it affects growth in the short run. Our result also shows that the price of agricultural commodities is within the range of (fairly high though volatile) in Nigeria and has a significant and positive effect on economic growth in the long run. The study therefore, recommends that government should provide conducive environment and stern the drift to staff looking for greener pasture. Funding source of the sector should be diversified and also the National Agricultural research policy should be strengthened.


Keywords


Price volatility, commodities, investment, economic growth.

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