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Title: Macroeconomic Policy And Agricultural Development In Nigeria
Author(s): KROKEYI Wisdom Selekekeme & AMAEGBERI Michael
Abstract: The importance of economic diversification through agricultural development cannot be overstated, particularly the use of macroeconomic policy instruments. This paper interrogated the relationship between monetary policy and agricultural sector development, particularly the crops and livestock subsectors in Nigeria from 1970 – 2019. The Ordinary Least Square (OLS) technique was employed. Empirical results indicated a negative but significant effect of money supply (MS) on crops subsector agricultural output, while monetary policy rate (MPR) and average annual rain fall (AAR) had positive and insignificant effect on crops subsector agricultural output. Also, negative and insignificant effects of money supply and monetary policy rate on livestock subsector agricultural output was found. It was also found that money supply and government expenditure on education had positive and significant effects on aggregate agricultural sector output. Also, monetary policy rate and gross fixed capital formation had negative and statistically significant effect on aggregate agricultural sector output. Based on the findings, the study recommends that monetary authority, which is the Central Bank of Nigeria (CBN) should ease monetary policy in order to reduce negative effects of monetary policy on crops and livestock agricultural subsectors in Nigeria as indicated on the results.
Keywords: Average Annual Rainfall, CPI, Government Expenditure, Money Supply, MPR
Journal: Economic and Social Science Review (ESR)

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