Impact of inclusive growth determinants on agricultural output in Nigeria

Abstract

The study examines the effect of inclusive growth determinants on agricultural output in Nigeria employing macroeconomic variables which include agricultural GDP, per capita income, unemployment and poverty rates. Government expenditure on education, labour force and government expenditure on health were used as control variables. The properties of the time series data (spanning 1981 to 2013)were tested using the Augmented Dickey Fuller (ADF) unit root test and Johansen co-integration tests. Also the error correction model (ECM) technique of analysis was applied to the model. The ECM results reveal that agricultural output (AGDP) increases as unemployment and poverty rates fall and when per capita income rises. This suggests that agriculture as a sector is a viable means of achieving the much desired inclusive growth. Serious attention should be paid to growing the agricultural sector by all stakeholders (government, private initiatives, research institutions and even individuals). Growing the agricultural sector of the nation more than ever before will reduce poverty rate and unemployment as well as increase per capita income.

Keywords: Inclusive growth, Agriculture, Poverty rate,Unemployment and Per capita income