Infrastructural Development and Value Addition in Agricultural Output in Nigeria
- Ude Damian Kalu
- ( paper pages. 209 - 238 )
Abstract
This work examined the impact of infrastructural development on value addition in agricultural output in Nigeria from 1981 to 2016, using secondary annual time series data. The methodology is centred on the neoclassical growth theory. The production function estimation tailed the Cobb-Douglas model stated as Hicks-neutral high-tech evolution (infrastructural development), on assumption that technological progress is both capital and labour augmenting. The value addition of the agricultural output model follows SolowResidual (SR) but with factor weights estimated econometrically. Results show that infrastructure has a significant effect on agricultural output value addition. Results also suggest that government capital expenditure on agriculture has a positive significant effect on agricultural output while value added tax has a negative effect on agricultural output value addition. The causality result shows that there is a unidirectional causality from value addition in agricultural output to infrastructural development in Nigeria. This work, consequently, indorses that satisfactory and appropriate care of prevailing infrastructure needs to be sustained while ratifying appropriate guidelines which will engineer effective execution and accomplishment of novel infrastructural ventures inNigeria in order to enhance agrarian subdivision growth, decrease degeneration of farmstead yield and promote the prospect of diversification of the Nigerian economy.
Citation
Ude Damian Kalu.
2021.
"Infrastructural Development and Value Addition in Agricultural Output in Nigeria"
The Nigerian Journal of Economic and Social Studies,
63 (2): 209 - 238.
JEL Classification
H54, Q10, Q14, Q16, Q18, R41, R42
