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Title: BALANCE OF PAYMENTS POSITION AND THE DYNAMICS OF AGRICULTURAL OUTPUT IN NIGERIA
Authors: Ewubare, Dennis Brown, Obi-Uzu Blessing
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1Ewubare, Dennis Brown, 1Obi-Uzu Blessing 1. Department of Agricultural and Applied Economics, Rivers State University, Port Harcourt, Nigeria
MLA 8 Brown, Ewubare, Dennis. "BALANCE OF PAYMENTS POSITION AND THE DYNAMICS OF AGRICULTURAL OUTPUT IN NIGERIA." Int. j. of Social Science and Economic Research, vol. 4, no. 1, Jan. 2019, pp. 249-264, ijsser.org/more2019.php?id=23. Accessed Jan. 2019. APA Brown, E. (2019, January). BALANCE OF PAYMENTS POSITION AND THE DYNAMICS OF AGRICULTURAL OUTPUT IN NIGERIA. Int. j. of Social Science and Economic Research, 4(1), 249-264. Retrieved from ijsser.org/more2019.php?id=23 Chicago Brown, Ewubare, Dennis. "BALANCE OF PAYMENTS POSITION AND THE DYNAMICS OF AGRICULTURAL OUTPUT IN NIGERIA." Int. j. of Social Science and Economic Research 4, no. 1 (January 2019), 249-264. Accessed January, 2019. ijsser.org/more2019.php?id=23.
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Abstract: This paper explored the empirical relationship between Balance of Payments (BOP) position and agricultural output in Nigeria. The BOP position was measured using current and capital account balances. Again, nominal effective exchange rate was introduced to the model as part of the explanatory variables. Combinations of Dynamic Least Squares (DOLS) and Granger causality test formed basis for the econometrics analysis in addition to the unit root and cointegration tests. The unit root test results indicate that all the variables are first difference stationary. The outcome of the cointegration test revealed that the variables have long run relationship. The cointegrating regression result showed that both current and capital balances are significant in driving the productivity of the agricultural sector while nominal effective exchange is statistically insignificant in influencing agricultural output. More so, the Granger causality test revealed that on one hand, a unidirectional causality runs from current account balance to agricultural output while on the other hand, joint causality runs from the three explanatory variables to agricultural output. It is therefore recommended for that policy makers should ensure that measures capable of maintaining favourable BOP position are prioritized in the macroeconomic policy design and implementation in order to foster rapid and sustained growth of the agricultural output.

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