AGRICULTURAL SECTOR AND ECONOMIC GROWTH IN NIGERIA: IMPLICATIONS FOR MILLENNIUM DEVELOPMENT GOALS (MDGS) ON POVERTY REDUCTION

Abstract

This paper set out to provide answers to the question, t Can the agricultural sector stimulate the economic average growth rate needed to achieve MDGs Goal one of poverty reduction in the post 2015 era? using co integration test, Granger Causality test and vector error correction model ( VECM).The findings from the above econometric models used showed that agricultural sector proxy by Agricultural Export Earnings (AEE) has direct relationship to economic growth proxy by (GDP) in Nigeria. The implication is that earnings from agricultural sector are capable of stimulating growth that will ensure the achievement of MDGs Goal of poverty reduction. The result of the Vector Error Correction Mechanism (VECM) revealed that AEE and GDP will converge towards long run equilibrium thereby confirming the result of our granger causality test. The paper, therefore, submits that there is need for integrated development objectives in agricultural sector that will ensure inclusive growth, increased employment, enhance per capita income and by extension achieve MDGs of poverty reduction.