Research Article
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Year 2023, Volume: 7 Issue: 2, 96 - 109, 18.10.2023

Abstract

References

  • Abachi, P. T. & P. T. Iorember (2017), ‘Macroeconomic and Household Welfare Impact of an Increase in Minimum Wage in Nigeria: A Computable General Equilibrium Model’, American Journal of Economics, 7(5),249– 58.
  • Adeniyi, O., Abimbola, O. A., Omisakin, O., & Egwaikhide, F.O. (2015). Financial development and economic growth in Nigeria: Evidence from threshold modelling. Economic Analysis and Policy, 47, 11-21.
  • Afangideh, U.J. (2010). Financial development and agricultural investment in Nigeria: historical simulation approach. Journal of Economic and Monetary Integration, Vol. 9. (1). pp 74 – 97.
  • Armington, P. A. (1969), ‘A Theory of Demand for Products Distinguished by Place of Production’, International Monetary Fund Staff Papers, 16(5): 159–78.
  • Ayodele, A. (2019). Impact of Agricultural Financing on Nigeria Economy. Asian Journal of Agricultural Extension, Economics & Sociology, DOI: http: doi.org//1-13.10.9734/ajaees/2019/v31i230130
  • Balago, G. S. (2014). Financial sector development and economic growth in Nigeria: An empirical investigation. International Journal of Finance and Accounting, 3(4), 253-265.
  • Bernard, O. A. (2009). ‘Empirical Analysis of Credit Supply and Agricultural Output in Nigeria’, unpublished dissertation, Department of Economics, Kogi State University, Ayingba-Nigeria. Budget Office of the Federation (2016), 2016 Budget, Abuja, Nigeria.
  • Central Bank of Nigeria (CBN) (2004). ‘Changing the Structure of the Nigerian Economy and Implication for Development’, Realm Communication, Lagos. CBN (2016), Annual Statistical Bulletin, Central Bank of Nigeria, Abuja.
  • Creswell, J. W. (2003) Research design: Qualitative, quantitative, and mixed methods approaches (2nd ed.). Thousand Oaks, CA: Sage.
  • Dandume, M. Y. (2014). Financial sector development, economic growth and poverty reduction: New evidence from Nigeria. Journal of the Faculty of Economics and Administrative Sciences, 4, 2-22.
  • Dervis, K., J. de Melo & S. Robinson (1982), General Equilibrium Models for Development Policy, a World Bank Research publication, World Bank, Washington
  • Demirguc-Kunt, A., & Levine, R. (2001). Financial structure and economic growth: Perspectives and lessons. Financial structure and economic growth: A cross-country comparison of banks, markets, and development, 3-14.
  • Demetriades, P. O., & Hussein, K. A. (1996). Does financial development cause economic growth? Time-series evidence from 16 countries. Journal of development Economics, 51(2), 387-411.
  • Dim, C. & U. Ezenekwe (2013). ‘Does Agriculture Matter for Economic Development? Empirical Evidence from Nigeria’, Journal of Finance and Economics, 1(1), 61–77.
  • Dong, F., Lu, J., & Featherstone, A. M. (2010). Effects of credit constraints on productivity and rural household income in China (No. 1040-2016-85086). Iowa State University Center for Agricultural and Rural Development Ames Working Paper, Iowa 50011-1070 www.card.iastate.edu
  • FAO – Food and Agricultural Organization (2006). Estimated data from World Rice Statistics and CORIFA of FAO, Statistics Division 2.www.fao.org 11/03/2008.
  • Finance Maps of World (2012). Banking sector reform in Nigeria. Retrieved on 09-04-2012 from http://finance. mapsofworld.com/economy-reform/nigeria/banking-sector.html.
  • Iheanacho, E. (2016). The impact of Financial development on economic growth in Nigeria: An ARDL analysis. Economies, 4(4), 26-36.doi:10.3390/economies4040026
  • International Food Policy Research Institute (2008), IFPRI Discussion Paper 00789
  • Iorember, P. T., & Jelilov, G. ((2018)). Computable General Equilibrium Analysis of Increase in Government Agricultural Expenditure on Household Welfare in Nigeria. African Development Review, 30(4), 362– 371.
  • Ishola, S.A., Olaleye, S.O., Ajayi, E.O., and Femi, E (2013). Government Expenditure on the Agricultural Sector and Economic Growth in Nigeria (1981 – 2010). Journal of Humanities and Social Sciences, 8 (2): 62 – 67.
  • Jhingan, M. L. (2013). The economics of development and planning. Vrinda Publications. Examining the Nexus between Agricultural Financing Reforms and Nigeria’s Macroeconomic Performance: A Computable General Equilibrium Analysis (2012-2020)
  • Kamil, S., U. Sevin & V. B. Festus (2017), ‘The Contribution of Agricultural Sector on Economic Growth of Nigeria’, International Journal of Economics and Financial Issues, 7(1),547–52.
  • King, R. G., & Levine, R. (1993). Financial intermediation and economic development, (Vol. 156189). Cambridge: Cambridge University Press.
  • Maduka, A. C., & Onwuka, K. O. (2013). Financial market structure and economic growth: Evidence from Nigeria data. Asian Economic and Financial Review, 3(1), 75.
  • Mckinnon, R. I (1973). Money and Capital in Economic Development, Washington, D.C. The Brookings Institution, Pp 112 – 115.
  • Nkoro, E., & Uko, A. K. (2013). Financial sector development-economic growth nexus: Empirical evidence from Nigeria. American International Journal of Contemporary Research, 3, 87-94.
  • Obinna, O. (2015). Financial development and economic growth in Nigeria. Journal of Economics and Sustainable Development, 6(20), 26-40.
  • Obi-Egbedi, O., V. Okoruwa, A. Aminu & S. Yusuf (2012), ‘Effect of Rice Trade Policy on Household Welfare in Nigeria’, European Journal of Business and Management, 4(8):160–70.
  • Okpara, G. C. (2010). Analysis of capital market performance and the growth of the Nigerian economy: A cointegration approach. Global Journal of Human Social Science, 10(1) September. http://globaljournals.org/ GJHSS-Volume10/2 – Analysis – of-Capital Market – Performance-and-the-Growth-of-the-Nigerian- Economy.Cointegration-Approach-Copy.pdf. Retrieved 23rd September 2012.
  • Okunmadewa, F. Olomola, A & Adubi, B. (1999). Trade liberalization and food security: Situation analysis in Nigeria. Development Policy Centre Research Report No. 17 Ibadan.
  • Olofin, S., A. Adenikinju and A. Iwayemi (2003), ‘A Computable General Equilibrium Analysis of Nigeria’s Trade Competitiveness’, CEAR Research Paper No. 2003/1.
  • Omankhanlen, A. E. (2012). The Financial Sector Reforms and their Effect on the Nigerian Economy. Economy Transaction Primarily Cognition.www.ughroletc. Vol.15 issue 2/2012 pp.45-57.
  • Onoja, A.O., Onu M.E. & Ajodo-Ohiemi S. (2011) ‘Contributions of Financial Sector Reforms and Credit Supply to Nigerian Agricultural Sector (1978-2009). CBN Journal of Applied Statistics, Vol. 2 No.2
  • Olagunju F.I. & Ajiboye A., (2010): “Agricultural Lending Decision: A Tobit Regression Analysis.” African Journal of Food Agricultural Nutrition and Development, 10 (5).
  • Olomola, A., (2017) “Ending Rural Hunger in Nigeria: Mapping Needs and Actions for Food and Nutrition Security”, Final Research Report Submitted to the Brookings Institution, Washington D. C., USA.
  • Paul, I., & Gylych, J. (2018). Computable General Equilibrium Analysis of Increase in Government Agricultural Expenditure on Household Welfare in Nigeria. African Development Review, 30, 362-371. DOI:https:doi. org/10.1111/1467-8268.12344
  • Popoola, O. (2014). The effect of stock market on Nigerian economy. Unpublished Manuscript, Department of Economics, Landmark University, Kwara State, Nigeria.
  • Schäfer, M. (2018). The fourth industrial revolution: How the EU can lead it. European View, 17(1), 5-12.
  • Schumpeter, J. A. (1982). The theory of economic development: An inquiry into profits, capital, credit, interest, and the business cycle (1912/1934). Transaction Publishers, –1982.–January, 1, 244.
  • Shaw, E.S (1973). Financial Deepening and Capital in Economic Development, Oxford University Press, New York, 65 – 72
  • Shepherd, W. G. (2002). Market Power and Economic Welfare. New York: Randan House.
  • Todaro, M.P. & S.C. Smith (2012). Economic Development (11th ed.). New York, San Francisco, and Upper Saddle River: Addison-Wesley.
  • Welman, J.C, Krueger, F., Mitchel, B. & Huysamen, G.K (2005), Research Methodology. Cape Town: Oxford University Press.

EXAMINING THE NEXUS BETWEEN AGRICULTURAL FINANCING REFORMS AND NIGERIA’S MACROECONOMIC PERFORMANCE: A COMPUTABLE GENERAL EQUILIBRIUM ANALYSIS (2012-2020)

Year 2023, Volume: 7 Issue: 2, 96 - 109, 18.10.2023

Abstract

This study conducted a computable general equilibrium analysis (2012-2020) to investigate the
relationship between Nigeria’s agriculture financing reforms and the country’s overall macroeconomic
performance. Specifically, the study evaluated the impact of the agricultural financing reforms on
household income and household welfare. The study finds that agricultural financing reforms through
a decrease in interest rates on agricultural loans by 10% and 8% have positive significant impact on
household welfare. While the impact of the policy options (decrease in interest rates on agricultural
loans by 10% and 8%) on household income is not significant. The study therefore recommends a
review in the interest rates on agricultural loans to improve household income. This recommendation
is premised on the findings that both 10% and 8% reductions failed to improve the income levels of the
households.

References

  • Abachi, P. T. & P. T. Iorember (2017), ‘Macroeconomic and Household Welfare Impact of an Increase in Minimum Wage in Nigeria: A Computable General Equilibrium Model’, American Journal of Economics, 7(5),249– 58.
  • Adeniyi, O., Abimbola, O. A., Omisakin, O., & Egwaikhide, F.O. (2015). Financial development and economic growth in Nigeria: Evidence from threshold modelling. Economic Analysis and Policy, 47, 11-21.
  • Afangideh, U.J. (2010). Financial development and agricultural investment in Nigeria: historical simulation approach. Journal of Economic and Monetary Integration, Vol. 9. (1). pp 74 – 97.
  • Armington, P. A. (1969), ‘A Theory of Demand for Products Distinguished by Place of Production’, International Monetary Fund Staff Papers, 16(5): 159–78.
  • Ayodele, A. (2019). Impact of Agricultural Financing on Nigeria Economy. Asian Journal of Agricultural Extension, Economics & Sociology, DOI: http: doi.org//1-13.10.9734/ajaees/2019/v31i230130
  • Balago, G. S. (2014). Financial sector development and economic growth in Nigeria: An empirical investigation. International Journal of Finance and Accounting, 3(4), 253-265.
  • Bernard, O. A. (2009). ‘Empirical Analysis of Credit Supply and Agricultural Output in Nigeria’, unpublished dissertation, Department of Economics, Kogi State University, Ayingba-Nigeria. Budget Office of the Federation (2016), 2016 Budget, Abuja, Nigeria.
  • Central Bank of Nigeria (CBN) (2004). ‘Changing the Structure of the Nigerian Economy and Implication for Development’, Realm Communication, Lagos. CBN (2016), Annual Statistical Bulletin, Central Bank of Nigeria, Abuja.
  • Creswell, J. W. (2003) Research design: Qualitative, quantitative, and mixed methods approaches (2nd ed.). Thousand Oaks, CA: Sage.
  • Dandume, M. Y. (2014). Financial sector development, economic growth and poverty reduction: New evidence from Nigeria. Journal of the Faculty of Economics and Administrative Sciences, 4, 2-22.
  • Dervis, K., J. de Melo & S. Robinson (1982), General Equilibrium Models for Development Policy, a World Bank Research publication, World Bank, Washington
  • Demirguc-Kunt, A., & Levine, R. (2001). Financial structure and economic growth: Perspectives and lessons. Financial structure and economic growth: A cross-country comparison of banks, markets, and development, 3-14.
  • Demetriades, P. O., & Hussein, K. A. (1996). Does financial development cause economic growth? Time-series evidence from 16 countries. Journal of development Economics, 51(2), 387-411.
  • Dim, C. & U. Ezenekwe (2013). ‘Does Agriculture Matter for Economic Development? Empirical Evidence from Nigeria’, Journal of Finance and Economics, 1(1), 61–77.
  • Dong, F., Lu, J., & Featherstone, A. M. (2010). Effects of credit constraints on productivity and rural household income in China (No. 1040-2016-85086). Iowa State University Center for Agricultural and Rural Development Ames Working Paper, Iowa 50011-1070 www.card.iastate.edu
  • FAO – Food and Agricultural Organization (2006). Estimated data from World Rice Statistics and CORIFA of FAO, Statistics Division 2.www.fao.org 11/03/2008.
  • Finance Maps of World (2012). Banking sector reform in Nigeria. Retrieved on 09-04-2012 from http://finance. mapsofworld.com/economy-reform/nigeria/banking-sector.html.
  • Iheanacho, E. (2016). The impact of Financial development on economic growth in Nigeria: An ARDL analysis. Economies, 4(4), 26-36.doi:10.3390/economies4040026
  • International Food Policy Research Institute (2008), IFPRI Discussion Paper 00789
  • Iorember, P. T., & Jelilov, G. ((2018)). Computable General Equilibrium Analysis of Increase in Government Agricultural Expenditure on Household Welfare in Nigeria. African Development Review, 30(4), 362– 371.
  • Ishola, S.A., Olaleye, S.O., Ajayi, E.O., and Femi, E (2013). Government Expenditure on the Agricultural Sector and Economic Growth in Nigeria (1981 – 2010). Journal of Humanities and Social Sciences, 8 (2): 62 – 67.
  • Jhingan, M. L. (2013). The economics of development and planning. Vrinda Publications. Examining the Nexus between Agricultural Financing Reforms and Nigeria’s Macroeconomic Performance: A Computable General Equilibrium Analysis (2012-2020)
  • Kamil, S., U. Sevin & V. B. Festus (2017), ‘The Contribution of Agricultural Sector on Economic Growth of Nigeria’, International Journal of Economics and Financial Issues, 7(1),547–52.
  • King, R. G., & Levine, R. (1993). Financial intermediation and economic development, (Vol. 156189). Cambridge: Cambridge University Press.
  • Maduka, A. C., & Onwuka, K. O. (2013). Financial market structure and economic growth: Evidence from Nigeria data. Asian Economic and Financial Review, 3(1), 75.
  • Mckinnon, R. I (1973). Money and Capital in Economic Development, Washington, D.C. The Brookings Institution, Pp 112 – 115.
  • Nkoro, E., & Uko, A. K. (2013). Financial sector development-economic growth nexus: Empirical evidence from Nigeria. American International Journal of Contemporary Research, 3, 87-94.
  • Obinna, O. (2015). Financial development and economic growth in Nigeria. Journal of Economics and Sustainable Development, 6(20), 26-40.
  • Obi-Egbedi, O., V. Okoruwa, A. Aminu & S. Yusuf (2012), ‘Effect of Rice Trade Policy on Household Welfare in Nigeria’, European Journal of Business and Management, 4(8):160–70.
  • Okpara, G. C. (2010). Analysis of capital market performance and the growth of the Nigerian economy: A cointegration approach. Global Journal of Human Social Science, 10(1) September. http://globaljournals.org/ GJHSS-Volume10/2 – Analysis – of-Capital Market – Performance-and-the-Growth-of-the-Nigerian- Economy.Cointegration-Approach-Copy.pdf. Retrieved 23rd September 2012.
  • Okunmadewa, F. Olomola, A & Adubi, B. (1999). Trade liberalization and food security: Situation analysis in Nigeria. Development Policy Centre Research Report No. 17 Ibadan.
  • Olofin, S., A. Adenikinju and A. Iwayemi (2003), ‘A Computable General Equilibrium Analysis of Nigeria’s Trade Competitiveness’, CEAR Research Paper No. 2003/1.
  • Omankhanlen, A. E. (2012). The Financial Sector Reforms and their Effect on the Nigerian Economy. Economy Transaction Primarily Cognition.www.ughroletc. Vol.15 issue 2/2012 pp.45-57.
  • Onoja, A.O., Onu M.E. & Ajodo-Ohiemi S. (2011) ‘Contributions of Financial Sector Reforms and Credit Supply to Nigerian Agricultural Sector (1978-2009). CBN Journal of Applied Statistics, Vol. 2 No.2
  • Olagunju F.I. & Ajiboye A., (2010): “Agricultural Lending Decision: A Tobit Regression Analysis.” African Journal of Food Agricultural Nutrition and Development, 10 (5).
  • Olomola, A., (2017) “Ending Rural Hunger in Nigeria: Mapping Needs and Actions for Food and Nutrition Security”, Final Research Report Submitted to the Brookings Institution, Washington D. C., USA.
  • Paul, I., & Gylych, J. (2018). Computable General Equilibrium Analysis of Increase in Government Agricultural Expenditure on Household Welfare in Nigeria. African Development Review, 30, 362-371. DOI:https:doi. org/10.1111/1467-8268.12344
  • Popoola, O. (2014). The effect of stock market on Nigerian economy. Unpublished Manuscript, Department of Economics, Landmark University, Kwara State, Nigeria.
  • Schäfer, M. (2018). The fourth industrial revolution: How the EU can lead it. European View, 17(1), 5-12.
  • Schumpeter, J. A. (1982). The theory of economic development: An inquiry into profits, capital, credit, interest, and the business cycle (1912/1934). Transaction Publishers, –1982.–January, 1, 244.
  • Shaw, E.S (1973). Financial Deepening and Capital in Economic Development, Oxford University Press, New York, 65 – 72
  • Shepherd, W. G. (2002). Market Power and Economic Welfare. New York: Randan House.
  • Todaro, M.P. & S.C. Smith (2012). Economic Development (11th ed.). New York, San Francisco, and Upper Saddle River: Addison-Wesley.
  • Welman, J.C, Krueger, F., Mitchel, B. & Huysamen, G.K (2005), Research Methodology. Cape Town: Oxford University Press.
There are 44 citations in total.

Details

Primary Language English
Subjects Applied Macroeconometrics
Journal Section Makaleler
Authors

Onyebuchi Henry Chiogor

Gylych Jelılov

Olugbenga Omotayo Alabı

Early Pub Date October 5, 2023
Publication Date October 18, 2023
Published in Issue Year 2023 Volume: 7 Issue: 2

Cite

APA Chiogor, O. H., Jelılov, G., & Alabı, O. O. (2023). EXAMINING THE NEXUS BETWEEN AGRICULTURAL FINANCING REFORMS AND NIGERIA’S MACROECONOMIC PERFORMANCE: A COMPUTABLE GENERAL EQUILIBRIUM ANALYSIS (2012-2020). Journal of Research in Economics, 7(2), 96-109.