Nexus of exchange rate deregulation and agricultural share of gross domestic product in Nigeria.

Abstract

The kernel of this study was to examine the causal relationship between exchange rate deregulation and the agricultural share of gross domestic product in Nigeria from an econometric perspective using time series data spanning a period of 26 years (1986 – 2011). Data on exchange rate and gross domestic product were analysed using augmented dickey fuller unit root test, unrestricted vector autoregression, pairwise granger causality and vector error correction model. The results showed the existence of unidirectional causality from exchange rate to agricultural share of gross domestic production and also, exchange rate deregulation had negative influence on agricultural share of gross domestic production in Nigeria. This implies that market driven exchange rate policy has been having undesirable influence on the trend in agricultural share of gross domestic production in Nigeria.

Description

Keywords

Agriculture, Exchange rate, Economy, Deregulation, Nigeria

Citation

17. Oyakhilomen, O., Falola, A. & Rekwot, G. Z. (2014): Nexus of exchange rate deregulation and agricultural share of gross domestic product in Nigeria. CBN Journal of Applied Statistics, 5(2):49-64. Available online at http://www.cenbank.org/Out/2015/SD/Nexus%20of%20Exchange%20Rate%20Deregulation%20and%20Agricultural%20Share%20of%20GDP%20in%20Nigeria.pdf

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