Quarterly Journal of International Agriculture No. 3/09
Impact assessment of macroeconomic policies on the
supply of non-traditional export crops in Nigeria
Timothy Olukunle Oni
Nigerian Institute of Social and Economic Research, Ibadan,
Nigeria
Abstract
Nigeria’s agricultural export has expanded to include non-traditional
products. However, the country is now over-dependent on petroleum
exports. It has, therefore, become necessary to diversify the sources
of its foreign exchange earnings. In this connection, impact of some
macroeconomic policy instruments on the supply of cassava and ginger
was examined. Time series secondary data were used. The data included
outputs of cassava and ginger. The policy variables included real
exchange rate and interest rate. Data were analyzed using simultaneous
equations regression model. Capital expenditure on agriculture had
significant effect on ginger with coefficient of 0.03 at p<0.05.
Interest rates on agricultural loans, with coefficient of -0.07, have
significant effect on ginger supply at p<0.05. Real exchange rate
with coefficient of 0.92 had significant effect on cassava supply at p
< 0.05. Policy strategies to expand supply of non-traditional
products include improved market linkages and maintaining stable
macroeconomic policy environment.
Keywords: agricultural products, supply, impact, macroeconomic policy indicators, simultaneous equations model
JEL: Q11
Vol. 48 (2009), No. 3: 243-264