CENSORED ANALYSIS OF NON-DEBT AGRICULTURE FINANCING AND ITS EFFECT ON AGRICULTURAL PER CAPITA INCOME IN NIGERIA FROM 1960-2017
Author(s): MADUEKWE, I. M., ABU, O and OKOROAFOR, D. O. K
Volume/Issue: Volume 2 , Issue 1 (2022)
This study examined non-debt agriculture financing and its effect on agricultural per capita income in Nigeria from 1960 to 2017. The study employed time series annual data to achieve the objective. The unit root test was carried out with Augmented Dickey Fuller (ADF) and Philip Perron test of stationarity for time series data and normality test was also carried out to obtain distribution of the data. The model for the study was estimated using fully modified ordinary least square method, canonical cointegrating regression, dynamic ordinary least square method and autoregressive distributed lag method. The hypotheses were tested with F-test and t-test. The results showed that there is no long run relationship between non-debt agriculture financing and agricultural per capita income. It revealed that agricultural foreign direct investment (positive), agricultural domestic private investment (negative), and agricultural per capita income in previous year (positive) did not significantly explain agricultural per capita income. It is therefore, recommended that the government alongside the organised private sector in agriculture should refocus efforts and policies towards the pattern of changes in non-debt agriculture financing and agricultural per capita income and supporting financing policies with greater local contents in Nigeria to ensure that the accumulated non-debt agriculture financing does not dissimulate agricultural domestic investment thereby derive down agricultural per capita income. In conclusion, the non-debt agriculture financing in Nigeria did not stimulate agricultural domestic investment required to boost agricultural per capita income in the agricultural sector.
Censored Analysis, Non-Debt Agriculture Financing, Agricultural Per Capita Income