Long Run Relationship Between Agricultural Production And Economic Growth In Nigeria; Evidence From The Johansen's Cointegration Approach

Abstract

The study sought to estimate the impact of agricultural production on the long run economic growth in Nigeria using the Vector Error Correction Methodology. The result shows that long run relationship exists between agricultural production and economic growth in Nigeria. Among the variables in the model, crop production appeared to be very significant in the determination of economic growth. The variance decomposition and the impulse response function show that most variances in GDP are explained by crop production. It is recommended that policy makers should encourage the production of crops in order to promote economic growth in Nigeria.

JORIND Vol. 4 (2) 2006: pp. 28-38