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The Agricultural Sector As The Key To The Diversification Of The Nigerian Economy For Sustanable Development
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For the purpose of data analysis,
a multiple regression model will be used to show the relationship
between the dependent variable (GDP) as a proxy for economic growth and
the explanatory variables, the revenue from agricultural output,
unemployment rate and inflation rate. The hypotheses to be tested in
this study are:
HO: There is no significant impact of agricultural output on Nigeria’s economic growth.
H1: There is a significant impact of agricultural output on Nigeria’s economic growth.
The hypotheses are to be tested at 5% level of significance.
This can be represented mathematically as:
GDP = f (X1, X2, X3,)
This can be further expressed in an econometric model as:
GDP = β0 + β1X1 + β2X2 + β3X3+µ
Where:
GDP = Gross Domestic Product
X1 = Agricultural Output
X2 = Unemployment rate
X3= Inflation rate
β0 = Constant term
β1 = Parameter estimate of agricultural output
β2= Parameter estimate of unemployment rate
β3=Parameter estimate of inflation rate
µ = Error term or stochastic variable
The
a priori expectation is that an increase in the independent variable
(agricultural output) will have an increase in the dependent variable
(GDP) while a decrease in the independent variable (unemployment rate)
will have an increase in GDP and an increase in inflation rate will have
an increase on the GDP. Hence, positive β1, negative β2, and positive
β3.
CHAPTER ONE -- [Total Page(s) 6]
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