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Read moreThis study investigates how financing in key agricultural subsectors, which include food crops and fisheries, affects economic growth in Nigeria. The study used secondary time series data obtained from the Nigerian Apex Bank (CBN) Annual Bulletin and other relevant official sources. To achieve the study's objectives, several econometric techniques were employed. The Augmented Dickey–Fuller (ADF) and Phillips–Perron (PP) unit root tests were used to determine the variables' stationarity. Conversely, the Autoregressive Distributed Lag (ARDL) bounds test was used to examine the existence of a long-run relationship among the variables. The ARDL model was further applied to estimate both the short-run and long-run effects of agricultural financing on economic growth in Nigeria. The unit root results revealed that the variables were integrated of mixed order, that is, I(0) and I(1), which justified the use of the ARDL model. The ARDL bounds test confirmed the presence of a long-run equilibrium relationship among the variables. The mean GDP growth rate is 4.16%, indicating that Nigeria's economy grew by about 4% annually on average during the study period. The maximum value of 15.33% suggests periods of strong economic expansion, while the minimum value of 2.04% indicates that the economy experienced contraction in some years. The standard deviation of 3.75 shows moderate fluctuations in economic growth over time. The Jarque-Bera probability of 0.283 suggests that the GDP growth data is normally distributed. The empirical findings showed that agricultural financing for food crops and fisheries has a positive and statistically significant effect on economic growth in Nigeria. The study therefore concludes that agricultural financing plays an important role in promoting economic growth in Nigeria. It recommends that government and financial institutions should increase funding to the agricultural sector and improve farmers’ access to credit facilities in order to enhance agricultural productivity and sustainable economic growth.
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Agricultural Finance, Economic Growth, Nigeria, Time Series, Gross Domestic Product.
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