EFFECTS OF FOREIGN DIRECT INVESTMENT ON AGRICULTURAL PRODUCTION IN NIGERIA: 1985 TO 2018.

Meze Michael Ejike

Abstract


The  study  determines  the  effect  of  foreign  direct  investment  inflow  into  the agricultural  sector  and  the  productivity  of  the  sector  in  Nigeria  from  1985  to 2018. It employed the Ordinary Least Squares Technique, Co-integration Test and   Error   Correction   Mechanism   which   minimizes   the   possibility   of estimating  spurious  relations  while  at  the  same  time,  retaining  long  run information.  Amongst  other  findings,  the  research  reveals  that  foreign  direct investment  has  significant  positive  impact  on  agricultural  production.  The findings also revealed that corruption perception index and exchange rate have negative   impact   on   agricultural   production   in   Nigeria.   The   study   thus recommends,  among  other  things,  an  enactment  and  reformation  of  extant laws and policies that could boost the ease of doingbusiness in Nigeria. This could   be   done   by   enforcing   investment   attracting   mechanisms   like   tax holidays and tax waivers in order to attract more investment in the agricultural sector.

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