Impact of Capital Market on Agricultural Sector Output in Nigeria (1980-2018)

Okidim Iboh Andrew; Okuduwor Adibie Adibie; Obe-Nwaka Mba Oloi; Week Doodei Agbabou

doi:doi:10.11648/j.ijae.20230803.14

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Impact of Capital Market on Agricultural Sector Output in Nigeria (1980-2018)

Okidim Iboh Andrew, Okuduwor Adibie Adibie, Obe-Nwaka Mba Oloi, Week Doodei Agbabou

Published in International Journal of Agricultural Economics (Volume 8, Issue 3)

Received: 11 May 2023 Accepted: 31 May 2023 Published: 20 June 2023

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Abstract

The growth and development of an economy is driven by the capital market due to its ability to generate long-term growth capital. The study analyzed the impact of capital market on agricultural sector output in Nigeria between 1981 to 2019. Specifically, the study’s objectives were to; determine the effect of the share price of conglomerates on agricultural output; determine the effect of the share price of agricultural goods on agricultural output; determine the effect of the share price of consumer goods on agricultural output; determine the effect of the share price of indistrial goods on agricultural output and determine the effect of the share price of oil and gas on agricultural output. Result of the unit root test showed that all the variable were stationary at first differncing. The Johansen co-integration test result also showed that long-run relationship exist among the variables, hence the use of Vector Error Correction method (VECM) for the analysis. Result of the Vector Error Correction method (VECM) showed that share price of agricultural firms (SPA), had positive significant effect and share price of oil and gas sector had negative significant effect on agricultural output. The study recommends that during the times of the oil boom, proactive savings from revenue receipts should be encouraged thereby cobbing its negative impact on agricultural output.

Published in	International Journal of Agricultural Economics (Volume 8, Issue 3)
DOI	10.11648/j.ijae.20230803.14
Page(s)	102-107
Creative Commons	This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.
Copyright	Copyright © The Author(s), 2024. Published by Science Publishing Group

Keywords

Agricultural Output, Conglomerates, Capital Market, Industrial Goods

References

[1]	Adeoye, A. A Amadi, R A Afolabi, A T. (2015). Impact of the Nigerian Capital Market on the Economy. European Journal of Accounting, Auditing and Finance: European Centre for Research, Training and Development UK, 3 (2): 88-96.
[2]	CBN (2015). Statistical Bulletin. Abuja; CBN.
[3]	Chinedu, B. M. O, Chigozie, C. I. & Onwuka, C. O. (2022). Capital market and agricultural sector output in Nigeria. International Journal of Research in Management, 4 (2): 12-20.
[4]	Chinwuba, O. & Amos O. A (2011). Stimulating Economic Development Through the Capital Market: The Nigeria Experience. Journal of Stock Market Development, 3 (5): 132 – 141.
[5]	Egwu, W. E. & Onwusiribe, N. C. (2017). Impact of share prices of listed livestock-based companies on performance of the Nigerian livestock sub-sector. Nigerian Agricultural Journal, 48 (1): 256-261.
[6]	Ilaboya, O. J. & Ibrahim S. (2004). Impact of Stock Market Performance on the level of Economic Activities: Evidence from Nigeria Stock market. Nigeria Journal of Business, 6 (1): 24-37.
[7]	Israel, F. K. & Buzugbe, N. P. (2015). Capital market and the performance of manufacturing industries in Nigeria. European Journal of Business and Management, 7 (13).
[8]	Mbanasor, J. A. & Onwusiribe, N. C. (2014). Impact of Mechanization, Energy Availability and Usage on Agricultural Sector Output of Nigeria: An Empirical Approach. International Journal of Agricultural Science and Bioresource Engineering Research, 1 (1&2): 39-56.
[9]	Nwako, K. G., Okidim, I. A. & Tuaneh, G. L. (2022). Share Prices Volatility and Economic Growth in Nigeria (1980 – 2018). Asian Journal of Economics, Finance and Management, 6 (2): 23-37.
[10]	Nzotta, S. & Okereke, E (2009). Financial deepening and economic development of Nigeria: an empirical investigation’, African Journal of Accounting Economics Finance and Banking Research, 5 (5): 55-66.
[11]	Odi, O. (2017). Exchange rate volatility, stock market performance and foreign direct investment in Nigeria. International Journal of Academic Research in Accounting Finance and Management Sciences, 5 (2): 172–184.
[12]	Okoro, E. G. (2013). Oil Price Volatility and Economic Growth in Nigeria: a Vector AutoRegression (VAR) Approach. Acta Universitatis Danubius: Oeconomica, 10 (1).
[13]	Oyefusi, S. A. & Mogbolu, R. O. (2003). Nigeria and the structural adjustment programme. In: MA Iyoha, CO Itsede (eds.): Nigerian economy structure, growth and development. Benin city. mindex publishing, 387-402.
[14]	Peter C. U. (2019). Impact of the Capital Market on Industrial Sector Development in Nigeria. Journal of Finance and Economic Research, 4 (1), 73-99.
[15]	Peter, F. O. & Chikulirim, E. I. (2018). Capital market and industrial performance nexus: Empirical Evidence from Nigeria. The Nigerian Journal of Economic and Social Studies, 60 (3): 1-17.
[16]	World Bank (2015). World Development Indicators. Washington DC; World Bank.

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APA Style

Okidim Iboh Andrew, Okuduwor Adibie Adibie, Obe-Nwaka Mba Oloi, Week Doodei Agbabou. (2023). Impact of Capital Market on Agricultural Sector Output in Nigeria (1980-2018). International Journal of Agricultural Economics, 8(3), 102-107. https://doi.org/10.11648/j.ijae.20230803.14

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ACS Style

Okidim Iboh Andrew; Okuduwor Adibie Adibie; Obe-Nwaka Mba Oloi; Week Doodei Agbabou. Impact of Capital Market on Agricultural Sector Output in Nigeria (1980-2018). Int. J. Agric. Econ. 2023, 8(3), 102-107. doi: 10.11648/j.ijae.20230803.14

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AMA Style

Okidim Iboh Andrew, Okuduwor Adibie Adibie, Obe-Nwaka Mba Oloi, Week Doodei Agbabou. Impact of Capital Market on Agricultural Sector Output in Nigeria (1980-2018). Int J Agric Econ. 2023;8(3):102-107. doi: 10.11648/j.ijae.20230803.14

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@article{10.11648/j.ijae.20230803.14,
  author = {Okidim Iboh Andrew and Okuduwor Adibie Adibie and Obe-Nwaka Mba Oloi and Week Doodei Agbabou},
  title = {Impact of Capital Market on Agricultural Sector Output in Nigeria (1980-2018)},
  journal = {International Journal of Agricultural Economics},
  volume = {8},
  number = {3},
  pages = {102-107},
  doi = {10.11648/j.ijae.20230803.14},
  url = {https://doi.org/10.11648/j.ijae.20230803.14},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijae.20230803.14},
  abstract = {The growth and development of an economy is driven by the capital market due to its ability to generate long-term growth capital. The study analyzed the impact of capital market on agricultural sector output in Nigeria between 1981 to 2019. Specifically, the study’s objectives were to; determine the effect of the share price of conglomerates on agricultural output; determine the effect of the share price of agricultural goods on agricultural output; determine the effect of the share price of consumer goods on agricultural output; determine the effect of the share price of indistrial goods on agricultural output and determine the effect of the share price of oil and gas on agricultural output. Result of the unit root test showed that all the variable were stationary at first differncing. The Johansen co-integration test result also showed that long-run relationship exist among the variables, hence the use of Vector Error Correction method (VECM) for the analysis. Result of the Vector Error Correction method (VECM) showed that share price of agricultural firms (SPA), had positive significant effect and share price of oil and gas sector had negative significant effect on agricultural output. The study recommends that during the times of the oil boom, proactive savings from revenue receipts should be encouraged thereby cobbing its negative impact on agricultural output.},
 year = {2023}
}

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TY  - JOUR
T1  - Impact of Capital Market on Agricultural Sector Output in Nigeria (1980-2018)
AU  - Okidim Iboh Andrew
AU  - Okuduwor Adibie Adibie
AU  - Obe-Nwaka Mba Oloi
AU  - Week Doodei Agbabou
Y1  - 2023/06/20
PY  - 2023
N1  - https://doi.org/10.11648/j.ijae.20230803.14
DO  - 10.11648/j.ijae.20230803.14
T2  - International Journal of Agricultural Economics
JF  - International Journal of Agricultural Economics
JO  - International Journal of Agricultural Economics
SP  - 102
EP  - 107
PB  - Science Publishing Group
SN  - 2575-3843
UR  - https://doi.org/10.11648/j.ijae.20230803.14
AB  - The growth and development of an economy is driven by the capital market due to its ability to generate long-term growth capital. The study analyzed the impact of capital market on agricultural sector output in Nigeria between 1981 to 2019. Specifically, the study’s objectives were to; determine the effect of the share price of conglomerates on agricultural output; determine the effect of the share price of agricultural goods on agricultural output; determine the effect of the share price of consumer goods on agricultural output; determine the effect of the share price of indistrial goods on agricultural output and determine the effect of the share price of oil and gas on agricultural output. Result of the unit root test showed that all the variable were stationary at first differncing. The Johansen co-integration test result also showed that long-run relationship exist among the variables, hence the use of Vector Error Correction method (VECM) for the analysis. Result of the Vector Error Correction method (VECM) showed that share price of agricultural firms (SPA), had positive significant effect and share price of oil and gas sector had negative significant effect on agricultural output. The study recommends that during the times of the oil boom, proactive savings from revenue receipts should be encouraged thereby cobbing its negative impact on agricultural output.
VL  - 8
IS  - 3
ER  -

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Author Information

Okidim Iboh Andrew

Department of Agricultural & Applied Economics, Faculty of Agriculture, Rivers State University, Port Harcourt, Nigeria
Okuduwor Adibie Adibie

Department of Agricultural & Applied Economics, Faculty of Agriculture, Rivers State University, Port Harcourt, Nigeria
Obe-Nwaka Mba Oloi

Department of Agricultural & Applied Economics, Faculty of Agriculture, Rivers State University, Port Harcourt, Nigeria
Week Doodei Agbabou

Department of Agricultural & Applied Economics, Faculty of Agriculture, Rivers State University, Port Harcourt, Nigeria

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APA Style

Okidim Iboh Andrew, Okuduwor Adibie Adibie, Obe-Nwaka Mba Oloi, Week Doodei Agbabou. (2023). Impact of Capital Market on Agricultural Sector Output in Nigeria (1980-2018). International Journal of Agricultural Economics, 8(3), 102-107. https://doi.org/10.11648/j.ijae.20230803.14

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ACS Style

Okidim Iboh Andrew; Okuduwor Adibie Adibie; Obe-Nwaka Mba Oloi; Week Doodei Agbabou. Impact of Capital Market on Agricultural Sector Output in Nigeria (1980-2018). Int. J. Agric. Econ. 2023, 8(3), 102-107. doi: 10.11648/j.ijae.20230803.14

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AMA Style

Okidim Iboh Andrew, Okuduwor Adibie Adibie, Obe-Nwaka Mba Oloi, Week Doodei Agbabou. Impact of Capital Market on Agricultural Sector Output in Nigeria (1980-2018). Int J Agric Econ. 2023;8(3):102-107. doi: 10.11648/j.ijae.20230803.14

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@article{10.11648/j.ijae.20230803.14,
  author = {Okidim Iboh Andrew and Okuduwor Adibie Adibie and Obe-Nwaka Mba Oloi and Week Doodei Agbabou},
  title = {Impact of Capital Market on Agricultural Sector Output in Nigeria (1980-2018)},
  journal = {International Journal of Agricultural Economics},
  volume = {8},
  number = {3},
  pages = {102-107},
  doi = {10.11648/j.ijae.20230803.14},
  url = {https://doi.org/10.11648/j.ijae.20230803.14},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijae.20230803.14},
  abstract = {The growth and development of an economy is driven by the capital market due to its ability to generate long-term growth capital. The study analyzed the impact of capital market on agricultural sector output in Nigeria between 1981 to 2019. Specifically, the study’s objectives were to; determine the effect of the share price of conglomerates on agricultural output; determine the effect of the share price of agricultural goods on agricultural output; determine the effect of the share price of consumer goods on agricultural output; determine the effect of the share price of indistrial goods on agricultural output and determine the effect of the share price of oil and gas on agricultural output. Result of the unit root test showed that all the variable were stationary at first differncing. The Johansen co-integration test result also showed that long-run relationship exist among the variables, hence the use of Vector Error Correction method (VECM) for the analysis. Result of the Vector Error Correction method (VECM) showed that share price of agricultural firms (SPA), had positive significant effect and share price of oil and gas sector had negative significant effect on agricultural output. The study recommends that during the times of the oil boom, proactive savings from revenue receipts should be encouraged thereby cobbing its negative impact on agricultural output.},
 year = {2023}
}

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TY  - JOUR
T1  - Impact of Capital Market on Agricultural Sector Output in Nigeria (1980-2018)
AU  - Okidim Iboh Andrew
AU  - Okuduwor Adibie Adibie
AU  - Obe-Nwaka Mba Oloi
AU  - Week Doodei Agbabou
Y1  - 2023/06/20
PY  - 2023
N1  - https://doi.org/10.11648/j.ijae.20230803.14
DO  - 10.11648/j.ijae.20230803.14
T2  - International Journal of Agricultural Economics
JF  - International Journal of Agricultural Economics
JO  - International Journal of Agricultural Economics
SP  - 102
EP  - 107
PB  - Science Publishing Group
SN  - 2575-3843
UR  - https://doi.org/10.11648/j.ijae.20230803.14
AB  - The growth and development of an economy is driven by the capital market due to its ability to generate long-term growth capital. The study analyzed the impact of capital market on agricultural sector output in Nigeria between 1981 to 2019. Specifically, the study’s objectives were to; determine the effect of the share price of conglomerates on agricultural output; determine the effect of the share price of agricultural goods on agricultural output; determine the effect of the share price of consumer goods on agricultural output; determine the effect of the share price of indistrial goods on agricultural output and determine the effect of the share price of oil and gas on agricultural output. Result of the unit root test showed that all the variable were stationary at first differncing. The Johansen co-integration test result also showed that long-run relationship exist among the variables, hence the use of Vector Error Correction method (VECM) for the analysis. Result of the Vector Error Correction method (VECM) showed that share price of agricultural firms (SPA), had positive significant effect and share price of oil and gas sector had negative significant effect on agricultural output. The study recommends that during the times of the oil boom, proactive savings from revenue receipts should be encouraged thereby cobbing its negative impact on agricultural output.
VL  - 8
IS  - 3
ER  -

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