Modelling the effects of trade liberalization on agricultural sector growth in Nigeria: 1990-2019

Abstract

The study modelled trade liberation effect on agricultural sector growth in Nigeria between 1990-2020. The study was conducted and carried out in Nigeria. Secondary data were collected from publication of central Bank of Nigeria. Economic and financial review bulletin, annual report and statement of accounts. Data collected were analyzed with a combination of mean, percentages, multiple regression  model based on OLS estimation technique. The Augmented Dickey Fuller (ADF) was employed to verify the stationarity of the variables  and error correction models was used to investigate existence of co-integration among variables. The empirical result from the estimation of the long run agricultural export performance equation in the country revealed significant relationship with respect to  agricultural export (AEX), agricultural degree of openness (ADO), national agricultural productivity (NAP) and agricultural capital  formation (ACF). The Coefficient of Multiple Determination indicated that in the long run, trade liberalization variables (model) accounted  for 64,19 percent of the changes in agricultural export performance. Therefore, it becomes necessary for policy makers to formulate  policies that will eventually enhance investment in agricultural capital formation, real exchange rate and foreign investment on agricultural in Nigeria as this will lead to increased output and promote exportation of agricultural products.