AN EMPIRICAL ANALYSIS OF THE CONTRIBUTION OF FORESTRY TO GROSS DOMESTIC PRODUCT OF NIGERIA

Author Name: 1. Awuna, J.M. 2. Ochigbo, A.E.

Volume/Issue: 02/08

Country: Nigeria

DOI NO.: 08.2020-25662434 DOI Link: https://www.doi-ds.org/doilink/02.2022-98693984/UIJIR

Affiliation:

1. Department of Agricultural Economics, Joseph Sarwuan Tarka University, Makurdi, Benue State, Nigeria , National Cotton Association of Nigeria (NACOTAN)

ABSTRACT

This study was done to determine the contribution of forestry to Gross Domestic Product of Nigeria. The population of this study comprised of all the thirty six (36) states in Nigeria and the data for this study was obtained from secondary sources. Linear regression and trend model were used as analytical tools for the study. The results showed that an increase in the forestry value will cause the GDP to increase by 920.533 and this is statistically significant at 5% level of probability, the F-value of 1012.92 with a P-value of 0.0000 showed that the variables included are jointly statistically significant at 1%. The R2 of 0.9844 and adjusted R2 of 0.9835 showed that, 98% of the variation of GDP of Nigeria is explained by the variables in the model. The result on the effect of government expenditure on agric-forestry productivity showed that an increase in credit to agriculture will cause the GDP to increase by 0.0001538 and this is statistically significant at 5% level of probabilityThe study concluded that, forestry contributes to gross domestic product of Nigeria and inflation has a negative effect on forestry as high inflation rate will lead to a decrease in forestry value which in turn reduces the value of Gross Domestic Product of Nigeria. The study also concludes that government expenditure can increase agri-forestry productivity as increases in budgetary allocations will cause increases in forestry productivity, since forestry has been seen to have significant contributions to gross domestic product of Nigeria. Increased government expenditure in agriculture (forestry) through increase in the annual budgetary allocation to forestry as well as setting up fiscal policies to control inflation in the country so as to provide a favourable ground for forests products to thrive in both domestic and export markets are recommended to help increase the contribution of forestry to gross domestic product of Nigeria. nt reasons behind the lack of awareness level of Pradhan Mantri Mudra Yojana among the citizens of Arunachal Pradesh.

Key words: Empirical Analysis, Forestry, Gross Domestic Product