Agricultural financing, output and macroeconomic growth Online publication date: Wed, 28-Sep-2016
by Bodiseowei C. Obudah; Steve S. Tombofa
African J. of Economic and Sustainable Development (AJESD), Vol. 5, No. 4, 2016
Abstract: This paper examined the effect of agricultural financing on agricultural output and macroeconomic output in the Nigerian economy. The error correction results from the analysis of time series data provided empirical evidence that there is a positive relationship between agricultural credit and agricultural output. Agricultural credit also had a positive effect on real GDP growth over the period of the study. However, credit default by borrowers is a serious menace which reduces the confidence of lenders. The Nigerian legal system should ensure a better credit enforcement mechanism and effective management of interest rates by monetary authorities. In addition, credit facilities and subsidies that would trickle down to individual farmers and farmers' cooperative groups will provide the needed funds to enhance agricultural output as well as economic output in Nigeria.
Online publication date: Wed, 28-Sep-2016
If you are not a subscriber and you just want to read the full contents of this article, buy online access here.Complimentary Subscribers, Editors or Members of the Editorial Board of the African J. of Economic and Sustainable Development (AJESD):
Login with your Inderscience username and password:
Want to subscribe?
A subscription gives you complete access to all articles in the current issue, as well as to all articles in the previous three years (where applicable). See our Orders page to subscribe.
If you still need assistance, please email email@example.com