Impact of export incentive schemes on the performance of agricultural exports in Nigeria

Abstract

Abstract. This paper examines the impact of export incentive schemes on the Performance of agricultural exports in Nigeria, using quarterly time series data from 1990-2014. The study employed Autoregressive Distributed Lag (ARDL) model to cointegration analysis and Granger causality test to examine the long run and causality relationship between growth in the Performance of agricultural exports and export incentive schemes in Nigeria. The bounds tests used in the study revealed that there is no long run equilibrium relationship between export incentive schemes and the performance of agricultural exports in Nigeria. It is of high importance to note that the granger casualty test indicates that there was a unidirectional relationship running from agricultural export (AGR) to export expansion grant (EEG), export development fund (EDF) to agricultural export (AGR). Since the findings of the study show that export development fund has positive and significant impact on the performance of agricultural exports in Nigeria, the study suggests that major concern should be given to its management and disbursement to ensure stable growth in the sub-component (agriculture) of non-oil export in Nigeria. This can be achieved through adequate funding by the concerned authority. Keywords. Export incentives, Non-oil exports, Causality, ARDL, Nigeria. JEL. J43, Q00, Q10.