Title: Agricultural Productivity in an Open Economy: Evidence from Trade Openness in Nigeria
Authors: Ebikabowei Biedomo ADUKU
Volume: 9
Issue: 6
Pages: 1-10
Publication Date: 2025/06/28
Abstract:
This study examines agricultural productivity in an open economy, taken evidence from trade Openness in Nigeria. It covers the periods from 1980 to 2023. The data was analyzed using the Autoregressive Distributed Lag (ARDL) technique. The study found a positive and insignificant effect of trade openness on agricultural sector productivity in the long run. In the short run, on the other hand, effect of trade openness on agricultural sector productivity was negative and significant. It was also found that domestic investment had a positive but insignificant effect on agricultural sector productivity in both the long run and short run. Also, Human capital development had a significant positive impact on agricultural sector production in both the long and short run. The findings also showed that external debt had positive and insignificant effect on agricultural productivity in the long run, and a negative and insignificant effect in the short run. Population growth had a positive and significant effect on agriculture sector productivity in both the long and short run. Trade policy should be complemented by agricultural assistance measures like targeted tariffs, infrastructure upgrades, or subsidies. Through tax breaks, risk assurances, and investments in rural infrastructure and mechanisation, the government should promote private investment.