Volume 2, Issue 5, October 2013, Page: 38-54
Agriculture and Intersectoral Linkages and their Contribution to Nigerian Economic Growth
ONAKOYA, Adegbemi Babatunde, Department of Economics, Tai Solarin University of Education, Ijebu Ode, Nigeria
Received: Aug. 22, 2013;       Published: Sep. 30, 2013
DOI: 10.11648/j.eco.20130205.11      View  3476      Downloads  226
Abstract
This study investigates the contributions of the agricultural sector to Nigeria's economy by estimating a macroeconometric model which is a system of simultaneous equations that seeks to explain the behaviour of key economic variables at the aggregate level, based on the received theories of economics. Within the context of the inter-linkages of the various sectors of the real economy, the estimates incorporate the linkages among agriculture, manufacturing, oil and gas and the service sectors, especially how the affect of the other sectors influence the growth of agriculture. The findings is that inter sectoral relationships are complicated and multi-directional. The spill-over effects and externalities generated by the interactions and linkages between the different sectors attest to the dynamic nature of the economy. Also, the economic role of the agricultural sector is a one-way path as the flow of capital is mainly towards the industrial, oil and gas and the tertiary services sectors. This study establishes that sectoral linkages are not always beneficial especially between agriculture and the oil sector and recommends the modernization of the industrial and services sectors in order to generate increase in local content value addition to agriculture.
Keywords
Agriculture, Intersectoral Linkage, Economic Growth, Macroeconometric Model
To cite this article
ONAKOYA, Adegbemi Babatunde, Agriculture and Intersectoral Linkages and their Contribution to Nigerian Economic Growth, Economics. Vol. 2, No. 5, 2013, pp. 38-54. doi: 10.11648/j.eco.20130205.11
Reference
[1]
R. M. Solow, "Investment and technical progress, Review of Economics and Statistics," The MIT Press, 1960.
[2]
T.W. Swan, "Economic growth and capital accumulation," Economic Record, vol. 32, pp. 334-361, 1956.
[3]
E. Cristina, "Agricultural development versus industrialization: Effects of trade," International Economic Review, vol. 38 (2), pp.431-452, 1997.
[4]
H. Chenery, and M. Syrquin, "Patterns of Development 1950-70," Oxford University Press, London.
[5]
W. J. Baumol, B. J. Blakman and E. N. Wolff, "Productivity and American Leadership," MIT Press, Cambridge, MA, 1989.
[6]
A.G.B. Fisher, "Production, Primary, Secondary, and Tertiary," The Economic Journal, vol. 15, 1939.
[7]
C. Clark, "The Conditions of Economic Progress," Macmillan, London, 1951.
[8]
A. P. Thirlwall, "Growth and Development," The Macmillan Press Ltd, London, 1983.
[9]
T. Linden, and M. Mahmood, "Long run relationships between sector shares and economic growth: A panel data analysis of the Schengen region," Economics and Business administration University of Joensuu, Finland, 2007.
[10]
World Bank, 2011, "List of economies," World Development Indicators. Washington DC, 11. Retrieved from: http://siteresources.worldbank.org /DATASTATISTICS/ Resources /CLASS.XLS
[11]
CIA, 2011, "The World Factbook." Retrieved from http//www.cia.gov/library/public
[12]
United States Energy Information Administration Independent Statistics and Analysis, 2010, Retrieved from http//www/eia.gov/countries /cab.efm?fips=AG
[13]
Energy Information Administration, 2010, "International Petroleum Monthly," February. Retrieved from http//www.eia.doe.gov /emeu/ipsr/appc.html
[14]
R. M. Auty, "Sustaining Development in Mineral Economies: The Resource Curse Thesis," London: Routledge, 1993.
[15]
O. Albert Hirschman, "The Strategy of Economic Development," New Haven, Conn.: Yale University Press, 1958.
[16]
O. Albert Hirschman, "The Strategy of Economic Development," In Agarwal, A.N. and Singh, S.P.(eds), Accelerating Investment in Developing Economies, London Oxford Press, 1969.
[17]
C. Jones, "Misallocation, economic growth, and input-output economics.," Stanford University, Working paper, 2010.
[18]
D. Saikia, "Analyzing inter-sectoral linkages in India," African Journal of Agricultural Research , vol. 6 (33), pp. 766-6775. (2011). DOI: 10.5897/AJARX11.024
[19]
Olofin, S. and J. Iyaniwura, (1983). Analysis of intersectoral linkages in the Nigerian economy. The Nigerian Journal of Economic and Social Studies, vol. 25 (2), pp. 233-250.
[20]
C.A Hidalgo, B. Klinger, A-L. Barabasi and R. Hausman (2007). The product space conditions Science vol. 317, pp. 482-487
[21]
[21] B. Balassa, "Exports and economic growth: Further evidence," Journal of Development Economics, vol. 5, pp.181-189, 1978.
[22]
S. J. Vogel, "Structural changes in agriculture: production linkages and agricultural demand-led industrialization," Oxford Economic Papers, New Series, vol. 46(1), pp. 136-156, 1994.
[23]
V. Subramaniam, "Agricultural intersectoral linkages and their contribution to economic development" University of Kentucky Doctoral Dissertations, Paper 771, 2010.
[24]
A. B. Onakoya, "Foreign Direct Investments and Economic Growth in Nigeria: A Disaggregated Sector Analysis," Journal of Economics and Sustainable Development, vol. 3(10), pp 66-71, 2012.
[25]
W.A. Lewis, Economic development with unlimited supplies of labour. The Manchester School, vol. 22, 139-191, 1954.
[26]
J. M. Silverman, Dual economy theory revisited: Governance and the role of the informal sector. Paper Presentation at the Fourth Annual International Conference of The Society for the Advancement of Socio-Economics (SASE), Irvine, California March 27 - 29, 1992.
[27]
Hanan G. Jacoby, "Food Prices, Wages, And Welfare In Rural India" The World Bank Development Research Group Agriculture And Rural Development Team, Policy Research Working Paper 6412, April 2013 Retrieved from Http://Wwwwds.Worldbank.Org /Servlet/Wdscontentserver /WDSP/IB /2013/04/17/000158349_20130417142134/Rendered/PDF/Wp s6412.Pdf
[28]
W. W. Rostow, "Stages of Economic Growth: A Non-Communist Manifesto," Cambridge: University Press, 1960.
[29]
V. Subramaniam,. and M. Reed, "Agricultural inter-sectoral linkages and its contribution to economic growth in the transition countries. Paper prepared for presentation at the International Association of Agricultural Economists Conference, Beijing, China, August 16-22, 2009.
[30]
C. Obi, "The Struggle for Resource Control in a Petro-state: A Perspective from Nigeria, In P.
[31]
UNCTAD/CALAG (2006). Creating Local Linkages by Empowering Indigenous Entrepreneurs. African Oil and Gas Services Sector Survey, Vol. 1 Nigeria. United Nations Conference on Trade and Development. 2007
[32]
H. Matahir, "The empirical investigation of the nexus between agricultural and industrial sectors in Malaysia," International Journal of Business and Social Science, vol. 3(8), vol. 225 - 231, 2012.
[33]
C. Delgado, "Sources of growth in smallholder agriculture in Sub-Saharan Africa: the role of vertical integration of smallholders with processors and marketers of high-value items," Agrekon (special issue- May, 1999), pp.165- 189.
[34]
R. Stringer, "How important are the 'non- traditional' economic roles of agriculture in development?" Centre for International Economic Studies CIES DISCUSSION PAPER 0118, 2001.
[35]
O. T. Awokuse, "Does agriculture really matter for economic growth in developing countries?" Paper presented at the American Agricultural Economics Association Annual Meeting, 2009.
[36]
A.L. Szeskin, and E. Davar, Intersectoral impact of agriculture: The case of Israel. Farm Economist," vol. 14 (1), pp. 192-207, 1985. doi:10.1080/13600818508423974
[37]
N.H. Blunch, and D. Verner, "Shared sectoral growth versus the dual economy model: Evidence from Cote d'Ivoire, Ghana, and Zimbabwe," African Development Review, vol.18 (3), pp. 283- 308 (2006)
[38]
H. E. Chebbi, "Agriculture and economic growth in Tunisia. China Agriculture," Economic Review, vol. 2(1), pp. 63-78, 2010.
[39]
Q. M. A. Hye, "Agriculture on the road to industrialisation and sustainable economic growth: An empirical investigation for Pakistan" International Journal of Agricultural Economics & Rural Development, vol. 2(2), pp. 1-6, 2009.
[40]
G. Kaur, S. Bordoloi, and R. Rajesh, "An Empirical investigation of the inter-sectoral linkages in India," Reserve Bank of India Occasional Papers, vol. 30(1), pp. 29-72, 2009.
[41]
S. Johansen, and K. Juselius, "Testing structural hypotheses in a multivariate cointegration analysis of the PPP and the uip for uk. Journal of Econometrics vol. 53(1-3), pp. 211-44, 1992.
[42]
C. W. J. Granger, "Investigating causal relations by econometric models and cross-spectral methods," Econometrica , vol.37 (3), pp.424–438, 1969.
[43]
H.Y. Toda, and T. Yamamoto, "Statistical inference in Vector Autoregressions with possibly integrated processes," Journal of Econometrics, vol. 66, pp. 225-250, 1995.
[44]
S.A. Block, "Agriculture and economic growth in Ethiopia: Growth multipliers from a four-sector simulation model," Agricultural Economics, vol. 20 (3), pp. 241–252, 1999. doi.org/10.1016/S0169- 5150(99)00007-9
[45]
H. Sepehrdoust and M. A. H. Qazi, "An Empirical Study of Inter-sectoral Linkages and Economic Growth. Trends in Applied Sciences Research, vol.7, pp. 494-504, 2012. DOI:10.3923/tasr.2012.494.504
[46]
B. Andreosso-O’Callaghan and Y. Guoqiang, "Intersectoral Linkages and Key Sectors in China 1987- 1997: An Application of Input-output Linkage Analysis.Asian Economic Journal, vol. 18 (2), pp.165- 175, 2004.
[47]
I. O. Fasanya, A.B.O. Onakoya, and M.A Adabanija, "Oil discovery and sectoral performance in Nigeria: An appraisal of the Dutch disease," IUP Journal of Applied Economics, vol. 12(2), pp. 25-40, 2013.
[48]
A. Zellner, and H. Theil, "Three-stage least squares: simultaneous estimation of simultaneous equations. Econometrica, vol. 30 (1), pp. 54–78, 1962.
[49]
L. H., Roller and L. Waverman, "Telecommunications infrastructure and economic growth: A simultaneous approach.American Economic Review, vol. 91 (4), pp. 909-923, 2001. DOI:10.1257/aer.91.4.909
[50]
R. Herrera, "The Benefits of Privatization: Evidence from Mexico," NBER Working Paper Series. Cambridge, 2001.
[51]
A. B. Onakoya, A. Salisu, and I.O. Oseni, "Infrastructure and economic growth in Nigeria: A multivariate approach," Research Journal of Business Management and Accounting, vol. 1(3), pp. 30 - 39, 2012.
[52]
C. W. J Granger and P. Newbold, Spurious regressions in econometrics. Journal of Econometrics vol.2 (2), pp.111–120, 1974. doi:10.1016/0304-4076(74)90034-7
[53]
N. D. Gujarati, "Basic Econometrics" (4thed.). New Delhi: Tata McGraw-Hill, 2003.
[54]
R. Tiffin, and X. Irz, "Is agriculture the engine of growth?" Agricultural Economics, vol. 35, pp.79– 89, 2006.
[55]
W. J. Baumol, "Macroeconomics of unbalanced growth: The anatomy of urban crisis," American Economic Review, vol. 57(3), pp. 415-426, 1967.
[56]
World Bank Data Agricultural raw materials imports percent of merchandise imports, 2012. Retrieved fromhttp:// www. tradingeconomics.com /nigeria /agricultural-raw-materials-imports- percent-of-merchandise-imports-wb-data.html
Browse journals by subject