AGRICULTURAL INPUT AND ECONOMIC GROWTH IN NIGERIA: AN EMPIRICAL ANALYSIS

Abstract

Previous studies have established a substantial connection between agricultural and economic growth because of agricultural growth’s ability to attract foreign investment, enhance employment rates, alleviate hunger, and promote economic development. This study has made a unique contribution by examining the link between agricultural input and economic growth in Nigeria while considering factors such as foreign direct investment (FDI), gross national income (GNI), and inflation rate. The secondary data used in this study were collected from the World Bank development indicator from 1990 to 2022. The unit root test was applied, and the results show that the series are integrated of order 1, which eliminated the presence of unit roots that could cause erroneous findings. The Johansen co-integration shows a long-term association between agricultural input and economic growth in Nigeria. Meanwhile, the fitted OLS regression model indicates that agricultural input, foreign direct investment (FDI), and gross national income (GNI) have a positive impact on Nigeria’s economic growth, whereas the inflation rate hinders the nation’s economic growth. Thus, in response to the increasing inflation rate, it is imperative for the government to allocate significant investments toward the agricultural sector. This will lead to an increase in agricultural output, thereby promoting economic growth.