The Impact of Deposit Money Bank's Agricultural Credit on Agricultural Productivity in Nigeria: Evidence from an Error Correction Model

Jonathan E. Ogbuabor and Cynthia A. Nwosu
Additional contact information
Jonathan E. Ogbuabor: Department of Economics, University of Nigeria, Nsukka, Nigeria,
Cynthia A. Nwosu: Department of Economics, University of Nigeria, Nsukka, Nigeria.

International Journal of Economics and Financial Issues, 2017, vol. 7, issue 2, 513-517

Abstract: This paper examined the impact of deposit money bank agricultural credit on agricultural productivity in Nigeria using an error correction model and annual time series data for the period 1981-2014. The results indicate that an equilibrium relationship exists between the variables. In addition, we find that deposit money bank's agricultural credit impacts positively and significantly on agricultural productivity in the long-run, but this impact is quite negligible in the short-run. We also find that agricultural land and labour force impact negatively on agricultural productivity both in the long-run and short-run. However, the impact of climate change variables, namely annual rainfall and average temperature remained negligible throughout. The paper therefore supports policies that will enhance and sustain the availability of bank credits at affordable interest rates for the agricultural sector, ensure easy access to land for agricultural purposes, and mechanize the agricultural system to attract the youth population.

Keywords: Deposit Money Bank; Agricultural Credit; Agricultural Productivity; Error Correction Model; Nigeria (search for similar items in EconPapers)
JEL-codes: C22 E51 N57 O13 Q14 (search for similar items in EconPapers)
Date: 2017
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (6)

Downloads: (external link)
http://www.econjournals.com/index.php/ijefi/article/download/4118/pdf (application/pdf)
http://www.econjournals.com/index.php/ijefi/article/view/4118/pdf (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eco:journ1:2017-02-67

Access Statistics for this article

International Journal of Economics and Financial Issues is currently edited by Ilhan Ozturk

More articles in International Journal of Economics and Financial Issues from Econjournals
Bibliographic data for series maintained by Ilhan Ozturk ().