Title: Comparative analysis of investment funding in the Nigerian oil and agricultural sector

Authors: Olorunfemi Yasiru Alimi; Olajide Johnson Alese

Addresses: Department of Economics, University of Lagos, Akoka, Yaba, Lagos-state, Nigeria; Centre for Applied Economics and Policy Studies, Ijebu-Ode, Ogun-state, Nigeria ' Department of Business Administration, Olabisi Onabanjo University, Ago-Iwoye, Ogun-state, Nigeria

Abstract: This paper makes a comparative analysis of investment funding between the Nigerian oil and agriculture industry, where both debt and non-debt financing instruments are considered. It employs both descriptive and long-run analyses to establish the facts using data from 1971-2011. The empirical results revealed that all the adopted debt and non-debt financing instruments, follow the same direction with varying magnitudes. Among all these instruments, savings (development stocks and treasury bills) are the best non-debt and (debt) financing mix used to propel the development of both agriculture and oil sector. More so, a negative shock was reported from treasury certificate and bond and international lending club on both sectors' output. However, policy should aim at areas that would make foreign funds have a trickle-down effect on the physical assets of the two sectors and not areas where their funds can easily be repatriated.

Keywords: debt and non-debt investment financing; agriculture and industrial performance; Nigeria.

DOI: 10.1504/IJEA.2017.084873

International Journal of Economics and Accounting, 2017 Vol.8 No.1, pp.67 - 82

Received: 29 Apr 2016
Accepted: 20 Jun 2016

Published online: 27 Jun 2017 *

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