Foreign Direct Investment Inflow and Agricultural Productivity in Nigeria

Dr. Okechukwu Stanley Chidinna, Akande Stella Ndidi, Obioha Helen Uchenna, Okoroafor Uchechi Nwakaego, Segun Emmanuel Kutu and Dr. Nwokoye Mathew Okechukwu
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Dr. Okechukwu Stanley Chidinna: Federal College of Land Resources Technology, Owerri
Akande Stella Ndidi: Federal College of Land Resources Technology, Owerri
Obioha Helen Uchenna: Federal College of Land Resources Technology, Owerri
Okoroafor Uchechi Nwakaego: Federal College of Land Resources Technology, Owerri
Segun Emmanuel Kutu: Federal College of Land Resources Technology, Owerri
Dr. Nwokoye Mathew Okechukwu: Federal College of Land Resources Technology, Owerri

International Journal of Research and Innovation in Social Science, 2024, vol. 8, issue 8, 3352-3364

Abstract: The study investigated the effect of Foreign Direct Investment inflow on Agricultural Productivity in Nigeria covering the period of 1981- 2023. The continued deterioration of budgetary allocation to agricultural sector, decline in agricultural output and the perception that if properly taken into consideration, the sector could bounce back to its position motivated the urge to investigate the alternative ways of revamping the sector through FDI. It is against this background that this study examines quantitatively the effect of foreign direct investment inflow to agriculture on agricultural sector productivity in Nigeria. The specific objectives were to ascertain the extent to which foreign direct investment inflows to Agriculture influences agricultural productivity in Nigeria, to determine the effect of exchange rate on Agricultural productivity, and to ascertain the relationship between trade openness and Agricultural productivity in Nigeria. Time series data were obtained from the CBN statistical bulletins. The data were found to be integrated of mixed order necessitating the ARDL Bounds test approach to cointegration which showed that there is long run relationship amongst the variables. Estimates from the Autoregressive Distributive Lag (ARDL) model revealed that Foreign Direct Investment to Agriculture (AFDI) and Trade Openness (TOP) significantly influenced AGRIGDP while Exchange Rate (EXCHR) seems not to have effect on the growth of the Nigeria’s Agricultural productivity during the period of study. Similarly, Foreign Direct Investment to Agriculture (AFDI), Exchange Rate (EXCHR), and Trade Openness (TOP) have a significant joint effect on Agricultural productivity in Nigeria which is being supported by the test of goodness of fit that the explanatory variables explained up to 99% of the total variations in the model. Based on the findings of the research, the study recommended that there is need to formulate policies that will attract more Foreign Investors towards the Agricultural Sector which will further increase the rate of Agricultural Productivity of the Nigerian economy.

Date: 2024
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