ISSN – PRINT:2756-4495 | ONLINE: 2756-4487

Volume 05, Issue 01 – 2025

Impact of Globalization and Trade on Agricultural Sector Productivity in Nigeria

Lucky, I. Amabuike1, Uju, R. Ezenekwe 2, Geraldine, Nzeribe3 & Benedict, Uzoechima4

1-4 Department of Economics, Faculty of Social Sciences, NAU, Awka

ABSTRACT

This work examines the extent to which globalization and trade impacted on agricultural sector productivity in Nigeria with annual data from 1980 to 2021. The data were sourced from CBN (2022), NBS (2021) and WDI (2020). The pre-test analysis revealed that domestic capital formation and inflation rate are integrated of order zero while exchange rate, trade (degree of trade openness), globalization (foreign direct investment) and agricultural productivity (agricultural output) are integrated of order one. The bound test analysis positioned that the variables have a long run relationship. The ECM estimate implied that the model has an adjustment speed of 81% in the event of disequilibrium. The ARDL computed result illustrated that globalization and trade granger cause agricultural sector productivity. Also exchange rate is statically significant in causing changes in the agricultural sector performance.  On the other hands, gross domestic capital formation and inflation rate do not statistically influence the agricultural sector productivity. The findings call for policies such as enabling business environment (such as right attitude to work, enforcement of contract terms, economic and social infrastructures and good governance/transparency) are paramount to encourage inflows of foreign resources as it indicated a positive association with agricultural sector productivity and Adequate and reliable agricultural program or scheme is needed at this period. The essence of the reliable and vibrant agricultural scheme is to educate and encourage few Nigerians to engage in mechanized and modern farming to boost food security.

Keywords: food security, degree of trade openness, globalization, agricultural sector productivity

 

 

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