CAUSAL RELATIONSHIP BETWEEN TECHNOLOGIES OF CASHLESS POLICY AND AGRICULTURAL SECTOR OUTPUT IN NIGERIA
Abstract
This study examines the causal relationship between the technologies of cashless policy and agricultural sector output in Nigeria. Ex-post facto research design was employed and the annual time series data for various years were obtained from Central Bank of Nigeria (CBN) statistical bulletin. Unit Root Test, Engle-Granger Co-integration Test, Error Correction Model (ECM) Test and Granger Causality Test were employed in the analyses. In the model, technologies of cashless policy are proxied by Automated Teller Machine Transactions (ATM), Point of Sales Transactions (POS), Mobile Payment Transactions (MPT), while Prime Lending Rate (PLR) and Deposit Rate (DR) were used as control variables. Results of the analyses revealed that the adjusted R-squared value is 91% showing that 91% of the changes that occurred in the agricultural sector output are influenced by the changes in the technologies of cashless policy. ATM and MPT have coefficient value of -0.000328 and -0.003405 respectively with the P-value of 0.3276 and 0.2463 respectively. The POS has coefficient value of 0.010574 and P-value of 0.0478 while the Prob(F-statistic) value is less the 0.005 which indicated that cashless policy technology variables have significant effect on the agricultural sector output in Nigeria. The result of granger causality test showed more support for the existence of supply leading hypothesis hence the study concluded that technologies of cashless policy predicts the agricultural sector output in Nigeria. Based on this, we recommend that the services of ATM, MPT and POS should be upgraded by ensuring availability of power supply, skilled labour, adequate security, reduction of illiteracy rate , organizing of workshops and seminars for both staff and users of the cashless policy technologies in Nigeria.
Keywords
Full Text:
PDFReferences
Adedokun, R., (2017). The effect of cashless banking on the financial performance of small and medium scale enterprises. International Journal of Advanced Research in public policy. 2(2), 133-242.
Adefolurin, F.A., (2016). Cashless economy policy and the development of Nigeria economy. Journal of Accounting Department, Lagos State Polytechnics, Ikorodu, Lagos State. 2(5).14-25.
Akhalumeh, P.B. & Ohiokha, F., (2012). Nigerian’s cashless economy: the imperatives. International Journal of Management and Business Study. 2(2), 31-36.
Ajayi, S.I. & Ojo, O.O. (2006). Money and banking: Analysis and policy in the Nigeria contex, Ibadan.
Azeez, K. & Oke, A., (2011). Fresh hurdles for CBN cashless economy plan. National Mirror, October, 2011.
Brooks, C., (2002). Introductory Econometrics for Finance. New York, Cambridge University Press.
Calderon, C., & Liu, I., (2003). The direction of causality between financial development and economic growth. Journal of Development and Economics,72(33),371-394.
Carlin, W. & Mayer, C., (2003). Finance, investment and growth. Journal of Development Economics 2(6), 305-322.
Ezeamama, C.M, Nnamani, J.N., Marine, M.I, & Mgbalile C.C., (2014).The impact of
Central Bank of Nigeria cashless policy in Nigeria Economy. Journal of Business and Management, 16(12),84-95.
Fase, M.M., & Abma, R.C. (2003). Financial environmental: and economic growth in selected Asian countries. Journal of Asian Economics, 14(20),11-21.
Froyen, R.T., (2009), Macroeconomics: Theories and Policies, Upper saddle River, Pearson Prentice Hall Press.
Goldsmith, R.W., (1967). Financial structure and development New Haven: Yale University Press.
Gujarati, D.N., (2003). Basic econometrics. Boston, McGraw-Hill Inc., New York.
Gupta, K.L., (1984). Finance and Economic Growth in Developing Countries. London: Croom Helm.
Hlanganani, S.S., (2012). Financial liberalization and economic growth in South Africa, unpublished PhD dissertation. University of Fort Hare, South Africa.
Humphrey, D.B., (2004). Replacement of cash by cards in US consumer payments. Journal of Economic and Business, 26(50), 211-225.
Hussein, K. & Thirlwall, A.P., (2000), The AK Model of “New” Growth Theory Is the Harrod-Domar Growth Equation: Investment and Growth Revisited, Journal of Post Keynesian Economics, 22(3): 427-435.
Ibrahim, T.M. & Shuaibu, M.I. (2013). Financial development: A fillip or impediment to Nigeria’s economic growth. International Journal of Economics and Finance Issues,3(9),305-318.
Jatau, V.S & Dung, K.L., (2014). The Central Bank of Nigeria’s cashless policy. A major panacea for eliminating corruption and enhancing sustainable development in Nigeria. An International Multidisciplinary Journal, Ethiopia, 8(4), 198-206.
Kerlinges, F.N., (1973). Foundations of behavioural research 2nd Edition. Retrived From Http://.Homeubalt.Edu/Traital/Kerlinger.Htn
King, R.G. & Levine, R.. (1993). Finance and growth: Schumpter might be right. Quarterly Journal of Econometrics,108(126),717-737.
Lucas, R.E., (1988). On the mechanics of economic development, Journal of Monetary Economics, 22(1): 3-42
Marco, A. & Bandiera, L., (2004). Monetary policy, monetary areas and finance development with electronic money, IMF working Study, IMF.
Mckinnon, R., (1973). Financial liberalization and economic development: A reassessment of interest rate policy in Asia and Latin America; (vol.5).
Moses-Ashike, A., (2011). Cashless economic can reduce risk of carrying huge
Ndebio, J.E., (2004). Financial Deepening, Economic and Development: Evidence from Selected Sub-Saharan African Countries; African Economic Research Consortium: Nairobi, Kenya.
Nzotta, S.M., (2014). Money, Banking and Finance: Theory and Practice; Hudson Jude Publishers: Owerri, Nigeria.
Okoye, P.V.C. & Ezejiofor. R., (2013). An appraisal of cashless economy policy in development of Nigerian economy. Research Journal of Finance and Accounting. 4(7), 237-256.
Omotunde, M., Sunday, T. & John – Dewole, A.T., (2013). Impact of cashless economy in Nigeria. Greener Journal of Internet, Information and Communication System 1(2), 40-43
Osazevbaru, H.O., (2014). Cashless policy and banks profitability in Nigeria. European Journal of Accounting, Auditing and finance Research. 2(10), 1-12.
Rebelo, S., (1991), Long-Run Policy Analysis and Long-Run Growth, Journal of Political Economy, 99(3), 500-521.
Romer, P.M., (1986). Increasing returns and long-run growth. Journal of political economy 19(94), 1002-37.
Sanusi L.S., (2012). The banking reform and its impact on the Nigerian economy. A public lecture delivered at the university of Warwick’s economic summit, Warwick 17th February, 2012.
Shaw. E.S., (1973). Financial deepening in economic development. New York: oxford university Press.
Suberu, O.J, Afonja, J.A, Akande, M.O. & Adeyinka, O.B. (2015). The effect of cashless policy, saving and bank credit on Nigeria deregulated economy. Journal of Emerging Trends in Economics and Management Science, 6(2),144-150.
Tajudeen , J.A. (2013). The effect of cashless policy of government on corruption in Nigeria, International Review of Management and Business Research, 2(3),682-690
Refbacks
- There are currently no refbacks.
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.