Analysis of Partial Effects of Agricultural Credit Guarantee Scheme Fund on Outputs in Nigerias Agricultural Subsectors
Analysis of Partial Effects of Agricultural Credit Guarantee Scheme Fund on Outputs in Nigerias Agricultural Subsectors
Akerele Dare*, Ashaolu Olumuyiwa Fowowe, Sanusi Rahman Akintayo and Egbetade Adedolapo
ABSTRACT
The study examined the effects of Agricultural Credit Guarantee Scheme Fund on agricultural outputs in three different agricultural subsectors in Nigeria. Data on the value of output of crop, livestock and fishery subsectors of agriculture,and the amounts of the fund allocated to each subsector from 1982 to 2013 were subjected to econometrics (time series) analysis. Results established positive and statistically significant influence of the amount of fund apportioned to crop (p<0.01) and livestock (p<0.05) subsectors on output growth in the respective subsectors. Likewise, the amount of the fund allocated to fishery subsector on fish output has positive influence on fish output but significant only at 10% level. While increases in the amount of the fund in a given year may substantially raise crop and fish production in that same year, it may take up to 2 years to experience a significant output expansion in livestock. Although results suggest that expansion of Agricultural Credit Guarantee Scheme Fund holds substantial positive signals for agricultural growth, especially in the crop and livestock subsector, the somewhat weak effect of the fund on fish production raises some curiosities for policy and strategy. Given that results are ceteris paribus,other incentives to raise agricultural production and measures to ensure that funds are used for the specified agricultural activities are suggested.
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