Globalization And Agricultural Productivity Paradigm: The Nigeria Perspective.

Abstract

The research was carried out to provide empirical information on agricultural productivity in Nigeria with focus on the impact of globalization. This is necessitated on the agricultural revolution resulting from the elongated recession the nation is passing through. The study made use of annual time series data spanning from 1986 to 2015 of globalization proxied by foreign direct investment (FDI) to agriculture, degree of openness, foreign exchange rate and consumer price index to assess the impact of globalization on agricultural productivity proxied by the output of agriculture. The study adopted Error Correction Model to test for the short run relationship having employed Augmented Dickey Fuller and Phillips-Perron unit root tests to verify stationarity of the variables used. While bounds Autoregressive distributed lag testing approach was employed to account for the long run relationship of the explanatory variables on the dependent variables. The result of the data analysis indicated that foreign exchange, degree of openness and foreign direct investment were not statistically significant in influencing the favorable trend of agricultural productivity in Nigeria, thus, its growth potential. However, consumer price index impacted positively on agricultural productivity to a larger extent. The study concluded that globalization has no significant impact on the growth of agriculture productivity in Nigeria. The study thus recommended that government should demonstrate proactive will in redirecting economic policies that would make the economy to be agricultural driven system through aggressive diversification of the economy in order to key into global world system. This must be reflected in increased investment and FDI into agricultural sector of the economy.