Bank Credit and Agricultural Output in Nigeria (1970 – 2013): An Error Correction Model (ECM) Approach
P. N. Nnamocha
Department of Economics, Imo State University, Owerri, Imo State, Nigeria
Charles N. Eke *
Department of Mathematics and Statistics, Federal Polytechnic Nekede, Owerri, Imo State, Nigeria
*Author to whom correspondence should be addressed.
Abstract
This work investigated the effect of Bank Credit on Agricultural Output in Nigeria using the Error Correction Mode (ECM). A yearly data (1970- 2013) obtained from the Central Bank of Nigeria was used for the analysis. The analysis showed that all the variables were integrated of order one I (1) and long-run relationship existed among them. However, following the empirical findings in this study, it showed that, in the long-run bank credit and industrial output contributed a lot to agricultural output in Nigeria, while; only industrial output influenced agricultural output in the short-run.
Keywords: Error correction model, bank credit, agricultural output and credit channel theory