International Journal of Advanced Educational Research

International Journal of Advanced Educational Research


International Journal of Advanced Educational Research
International Journal of Advanced Educational Research
Vol. 4, Issue 2 (2019)

Financial deepening and agricultural sector output in Nigeria


Okuma N Camillus

This study examines the Causal Relationship between Financial Deepening and Agricultural Sector Output in Nigeria (AOG). Ex-post facto research design was employed and the annual time series data for various years were obtained from Central Bank of Nigeria (CBN) Statistical Bulletin. Unit Root Test, Engle –Granger Co- integration Test, Error correction Model (ECM) Test and Granger Causality Tests were employed in the analyses. In the model, Financial Deepening is proxied by Prime Lending Rate, Deposit Rate, Ratio of Financial Savings to GDP, Ratio of Private Sector Credit to GDP, Ratio of Money Supply to GDP, Results of the analyses revealed that, The adjusted R-squared indicated that Financial Deepening explains 25% of changes in Agricultural Sector Output in Nigeria, Prob. (F-statistics) of 0.325377 and the result of Granger Causality showed that AOG, granger causes PLR, RFS, RPSC, RMS indicating evidence of demand following hypothesis (AOG leads Financial Deepening). The study therefore recommends establishment of functional agro-firms and encouragement of private owned cottage and micro firms that will employ the skilled labour and also make use of the agricultural sector output as their raw materials.
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How to cite this article:
Okuma N Camillus. Financial deepening and agricultural sector output in Nigeria. International Journal of Advanced Educational Research, Volume 4, Issue 2, 2019, Pages 01-09
International Journal of Advanced Educational Research International Journal of Advanced Educational Research