HOW DOES BANK CREDIT AFFECT AGRICULTURAL EXPORT IN NIGERIA?
Abstract
The study focused on bank credit as one of the oft cited determinants of agricultural export. Nigeria’s post oil experience in agricultural export has remained lackluster. In an auto regressive distributed lag specification, incorporating variables often missed out in most other studies (relative price, world GDP growth, etc), bank credit proved to be significantly and positively related to agricultural export. It was also economically non-trivial. The conclusion was that Nigeria’s poor performance in agricultural export was due partly to the inadequacy of credit. To remedy the situation, it was recommended that the tenure of funds available for agricultural activity should be differently structured, and its quantum scaled up. The opportunity to do so can arise from the creation of an agriculture trust fund.
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