The study examined the effect(s) of capital inflow, agricultural output on economic
growth in Nigeria. The study embraced annual time-series data spanning from 1986 to
2019 and employed the fully modified ordinary least square (FM-OLS) technique.
Variables used in the study are gross domestic product per capital income (LGDPPC),
foreign direct investment inflow (FDI), official development assistance (LOAD),
agricultural output (LAGROUT) and exchange rate (EXR). The study showed that
exchange rate (EXR) is negative and statistically significant, while on the contrary,
foreign direct investment inflows (LFDI) also showed a negative and statistically not
significant in the model. Consequently, the study discovered that positive and significant
relationship exists between agricultural output (LAGROUT) and official development
assistance (LOAD) for the period of study. The finding showed that the coefficient of
interaction between agricultural output and foreign direct investment (LAGROUT*
LFDI) is significant and has the expected sign. The study therefore, recommended that
government should put in place a strategy for attracting more foreign investors capable
of generating a higher volume of private investment that can have a significant impact
on agricultural output.
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