IMPACT OF FOREIGN DIRECT INVESTMENT(FDI) ON DOMESTIC AGRICULTURAL PRODUCTION (DAP) IN NIGERIA: EVIDENCE FROM ARDL MODEL APPLICATION (1981-2018)

Author Name: 1. Mr. Ali, Ayuba 2. Mr. Adejo, Moses Adejo 3. Mrs. Obekpa, Hephzibah Onyeje 4. Mr. Frimpong, Ebenezer

Volume/Issue: 02/03

Country: Nigeria, Hungary

DOI NO.: 08.2020-25662434 DOI Link: https://www.doi-ds.org/doilink/09.2021-17798463/UIJIR

Affiliation:

1. Federal University of Agriculture Makurdi, PMB2373, Benue State, Nigeria.
2. Federal University of Agriculture Makurdi, PMB2373, Benue State, Nigeria.
3. Federal University of Agriculture Makurdi, PMB2373, Benue State, Nigeria.
4. Department of Agribusiness, Corvinus University of Budapest, Hungary.

ABSTRACT

Increase in Domestic Agricultural Productivity (DAP) is germane for food security and employment of our increasing population in Nigeria. This study determined the impact of Foreign Direct Investment (FDI) on the domestic agricultural production with evidence from Autoregressive Distributed Lag (ARDL) model using time series data that spans from 1981-2018. The findings from the growth model affirms a positive growth in FDI and domestic agricultural production as found in previous studies. The result suggests that FDI has positive impact on domestic agricultural production in the long run and short run. The result also shows that the present value of domestic agricultural production will predict future values of FDI. Therefore, policies to attract inflows of FDI to agriculture are suggested while limitations of the study as well as direction for future research are discussed.

Key words: FDI, Domestic Agricultural Productivity (DAP), ARDL Model, Causal Relationship, Nigeria