Author(s): Atuma Emeka, Ogbonna Jennifer Nkemdirim, Udenta Blessing Nancy, Nkwagu Chibuike Christian
This study examined the relationship between agricultural sector value chain contribution and economic growth in Nigeria for the time span of 1981-2019, with the help of time series data obtained from the Central Bank of Nigeria (CBN) Statistical Bulletin. Unit Root test was used to test for the stationarityof the series, whereas the Co-integration test was used to test for the long run relationship among the variables of the study. However, Vector Error Correction Mechanism was used to evaluate the short run and long run dynamisms of the study and Granger Causality test was employed to establish the direction of pass among the variables under consideration employed in the analysis. The variables employed in the analysis are gross domestic product (GDP) as a dependent variable) while independent variables include value chain in Crop Production (CRP), value chain in Live Stock production (LSP) and value chain in fishery Production (FSP). The results of our unit root test showed that all the variables were stationar at first difference. Cointegration result indicated the existence of a long-run relationship of the variables in the study and this necessitated the application of Vector Error Correction Mechanism; which revealed that value chain in crop production, live stock production and fishery production are positive and statistically significant to gross domestic product in Nigeria. Therefore, based on the above findings, the study recommends that government should create secured and enabling environment for commercial farming which will encourage both local and foreign investors to invest in agriculture in the country.