Abstract
The agricultural sector in Eswatini is viewed as an engine to foster economic growth, reduce poverty and eradicate inequality. The purpose of the study was to investigate the effects of monetary policy on the agriculture Gross Domestic Product (GDP) in Eswatini using annual data for the period starting from 1980 to 2016. Using the Vector Error Correction model (VEC), the empirical results indicated that in the long run, agriculture GDP, exchange rate, interest rate, inflation, broad money supply, and agriculture credit have a negative effect on agriculture GDP in Eswatini. In the short run the study indicated that the variation in agriculture GDP is largely significant caused by the lagged agricultural GDP, interest rate, exchange rate as well as inflation. Money supply and agriculture credit contribute 0.46% and 0.55%, respectively to the variation in agricultural GDP. The study recommends that programs aimed at availing affordable credit to farmers should be prioritized to cushion the agriculture sector against adverse monetary policy shocks in the short to medium term, specifically interest rates, to ensure continuous production.
Highlights
The idea of health as a form of human capital determinedly makes health an instrument for raising economic value and income levels of individuals
Findings from this study show that: Life expectancy has significant impact on agricultural output potentials in Nigeria
There is a causal relationship between health outcomes and agricultural output in Nigeria
Summary
The idea of health as a form of human capital determinedly makes health an instrument for raising economic value and income levels of individuals. World Health Organization (2012), stressed that a major (about 50%) determinant of economic growth differentials between/among nations can be attributable to health status and life expectancy. This seems to suggest that sufficient healthcare could be seen as key policy-element in promoting broad based regional and national development. There is need to carry out empirical study on the effect of health outcomes on the agricultural output It appeared that efforts have been made over the years in Nigeria to strengthen the health sector. These formed the starting point of this study which aimed at providing answers to the following questions: To what extent has life expectancy affected agricultural output in Nigeria? To what extent has mortality rate affected agricultural output in Nigeria? What direction of causality exists between health outcomes and agricultural output in Nigeria?
Sign-in/Register to view highlights & summary Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callMore From: International Journal of Economics and Financial Research
Disclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
