IMPACT OF TRADE LIBERALIZATION ON NIGERIA’S AGRICULTURAL OUTPUT: 1986-2010

IMPACT OF TRADE LIBERALIZATION ON NIGERIA’S AGRICULTURAL OUTPUT: 1986-2010

Abstract:

This thesis examines the impact of trade liberalization on Nigeria agricultural output from 1986 – 2009. The choice of this period is because it is within this period that Nigeria began the systematic process of deregulation of its economy and adopted more liberal trade and exchange rate regimes. Given the objectives of the study and it uniqueness ordinary least square (OLS) regression was found to be more appropriate. Justification for using OLS as method is because of it un-biased properties, efficiency and completeness. The study found that trade liberalization on an aggregate exact a significant positive impact on agricultural output in Nigeria. It impact on an average is about 14 percent in increase on agriculture output. In the disaggregated model the study found significant impact differences. For example, the positive effects of trade liberalization on agricultural sub-sector such as crop production, livestock and forestry are slightly significant., but the impact of trade liberalization on fish production output is highly significant. It exact about 28 percent on the output of fish production. We therefore concludethat trade liberalization has fairly significant positive impact on agricultural output in Nigeria. The study proffered the following recommendations. First, Making deliberate efforts by government to increase small scale enterprises in Nigeria. This is because most enterprises in Nigeria are likely to agro-allied that may require raw materials from agriculture and also increase in per-capita productivity of the people through improved technological innovation.

IMPACT OF TRADE LIBERALIZATION ON NIGERIA’S AGRICULTURAL OUTPUT: 1986-2010