The Nexus between Infrastructure Development and Agricultural Growth In Nigeria

Abstract

The study examined the impact of infrastructure development on agricultural growth in Nigeria during the period 1990-2022. Key variables examined include public capital expenditure on economic services (PCEES), employment in agriculture (EMPA), research and development (RD), domestic credit to the private sector (DCPS), and agricultural output. Statistical analysis using the Ordinary Least Square (OLS) technique was employed, along with the Augmented Dickey-Fuller (ADF) unit root test to ensure the stationarity of the time series data, and the Johansen cointegration test to assess the long-run relationship between the dependent and independent variables. Our results show that all variables, except research and development, were stationary at first difference. The Johansen cointegration test conclusively demonstrated the existence of a long-run relationship in two cointegrating equations. Furthermore, the results from the Ordinary Least Squares (OLS) technique reveal that public capital expenditure on economic services, domestic credit to private sectors, and research and development were found to have a positive correlation with agricultural output in Nigeria. Conversely, employment in agriculture (EMA) was identified as having a negative effect on agricultural output in the country. The study recommends increasing investment in public capital expenditures on economic services. Moreover, establishing research institutes focused on agriculture in each state can provide valuable insights and solutions to boost the sector's productivity.