EFFECT OF AGRICULTURAL AND MANUFACTURING PRODUCTIVITY ON ECONOMIC GROWTH IN NIGERIA

Abdul Raheem Olamide
Email:el.nilojr@gmail.com

ABSTRACT

The contributions of Agricultural and Manufacturing Sectors to Economic Growth cannot be overemphasized. This study examined the effect of agricultural and manufacturing productivity on economic growth in Nigeria using data for the period 1980 to 2020. The tests for time series properties of the variables was carried out by Augmented Dickey-Fuller (ADF) test which suggested that the variables are integrated of order 1. Hence, the error correction model was used to estimate the short run coefficients of the model. The co-integration test indicated the presence of a long run relationship among the variables. The results reveal that
agricultural output has a positive and significant effect on economic
growth both in the short run and in the long run while manufacturing output only has a positive relationship with economic growth in the short run. In the long run, the relationship is negative but insignificant. The study suggested that investment in the agricultural and manufacturing sectors should be promoted to stimulate economic growth. Also, a stable exchange rate system should be encouraged and maintained to boost economic growth.
Keywords: Agricultural Sector, Manufacturing Sector, Economic
Growth