Nexus between Economic Phenomena and Growth Rate of Fishery Sector in Nigeria
DOI:
https://doi.org/10.32734/injar.v4i2.5884Keywords:
economic phenomena, fishery, GDP, growth rate, NigeriaAbstract
Time series data that spanned from 1981-2019 sourced from CBN, FAO, and UNCTAD data banks were used to determine the growth of fishery sector in Nigeria. The obtained data was analyzed using the two-step methodology of Engel and Granger, Granger causality, and the impulse response function. The result showed evidence of co-integration between fishery GDP growth rate and the economic phenomena. Also, the GDP growth rate of the sector is efficient as it established a long-run equilibrium but the slow pace at which it corrects the distortion in its equilibrium makes the state of the efficiency to be a weak one. Furthermore, the fishery’s GDP growth rate is affected by high inflationary trend, red-tapism, and poor credit utilization. Empirical evidences showed that unexpected local shocks on the economic phenomenon will have a transitory effect on FGDP growth rate, thus will die-out over time. It was observed that the effect of the internal mechanism on the growth rate is passive while the external system effect is active on the growth rate. Therefore, the study recommends the need for policy strengthening by the concerned stakeholders viz: tiding of inflationary trend, red-tapism, and ineffective credit utilization, thus enhancing the growth of the sector.
Downloads
References
REFERENCES
O. O. Muftaudeen and A. Hussainatu, “Macroeconomic policy and agricultural output in Nigeria: Implications for food security,” American Journal of Economics, vol. 4, no.2, pp. 99-113, 2014.
E. J. Udoh and S. B. Akpan, “Macroeconomic variables affecting fish production in Nigeria,” Asian Journal of Agriculture and Rural Development, vol. 9, no. 2, pp. 216-230, 2019.
A. Rehman, Z. Deyuan, S. Hena, and A. A. Chandio, “Do fisheries and aquaculture production have dominant roles within the economic growth of Pakistan? A long-run and short-run investigation,” British Food Journal, vol. 121, no. 8, pp. 1926-1935, 2019.
FAO, The state of world fisheries and aquaculture part 1: world review of fisheries and aquaculture, Rome, Italy: FAO, 2014. [Online]. Available: http://www.fao.org/3/a-i3720e/i3720e01.pdf.
R. Hilborn and D. Ovando, “Reflections on the success of traditional fisheries management,” ICES Journal of Marine Science, vol. 71, no. 5, pp. 1040-1046, 2014.
M. Føre, et al., “Precision fish farming: a new framework to improve production in aquaculture,” Biosystems Engineering, vol. 173, pp. 176-193, 2018.
S. B. H. Shah, et al., “An economic analysis of the fisheries sector of Pakistan (1950-2017): Challenges, opportunities and development strategies,” International Journal of Fisheries and Aquatic Studies, vol. 6, no. 2, pp. 515-524, 2018.
F. M. Suplicy et al., “Planning and management for sustainable coastal aquaculture development in Santa Catarina State, South Brazil,” Reviews in Aquaculture, vol. 9, no. 2, pp. 107-124, 2015.
S. B. H. Shah et al., “An economic analysis of the fisheries sector of Pakistan (1950-2017): Challenges, opportunities, and development strategies,” International Journal of Fisheries and Aquatic Studies, vol. 6, no.2, pp. 515-524, 2018.
S. B. H. Shah, et al. “An economic analysis of the fisheries sector in Pakistan (1950-2013),” Indian Journal of Geo-Marine Sciences, vol. 46, no. 10, pp. 1-10, 2017.
B.B. Adekoya and J. W. Miller, “Fish cage culture potential in Nigeria: An overview of national cultures,” Agric. Focus, vol. 1, no. 5, pp. 10-16, 2004.
FAO, Nutritional benefit of fish, Rome, Italy: FAO, 2018. [Online]. Available: http://www.fao.org/docip//68.
J. K. Blay, S. U. Maiadua, and M. S. Sadiq, “Horizontal market integration and price transmission between maize, sorghum, and millet in Dawanau market, Kano State, Nigeria: Evidence from non-linear vector error correction model,” Global Journal of Agricultural Economics, Extension, and Rural Development, vol. 3, no. 10, pp. 330-337, 2015.
I. P. Singh, M. S. Sadiq, S. M. Umar, I. J. Grema, B. I. Usman, and M. A. Isah, “Cointegration and causality: An application to GDP and major sectors of Nigeria,” International Journal of Innovative Research and Review, vol. 4, no.2, pp. 40-53, 2016.
M. S. Sadiq et al., “Extent, pattern, and degree of integration among some selected cocoa markets in West Africa: An innovative information delivery system,” Journal of Progressive Agriculture, vol.7, no.2, pp. 22-39, 2016.
R. F. Engle and C. W. J. Granger, “Co-integration and error correction: representation, estimation, and testing,” Econometrica, vol. 55, no. 2, pp. 251-276, 1987.
A. A. Reddy, “Market integration of grain legumes in India: The case of the chickpea market,” SAARC Journal of Agriculture, vol. 10, no.2, pp. 11-29, 2012.
M. S. Sadiq, I. P. Singh, B. Danjuma, S. Sharma, and M. Lawal, “Determinants of long-run and short-run cotton lint export performance of Africa,” JIM QUEST Journal of Management and Technology, vol. 14, no.1, pp. 72-80 89, 2018.
C. W. J. Granger, “Investigating causal relations by econometric models and cross-spectral methods,” Econometrica: the Econometric Society, vol. 37, no. 3, pp. 424-438, 1969.
M.M. Rahman and M. Shahbaz, “Do imports and foreign capital inflows lead economic growth? Cointegration and causality analysis in Pakistan,” South Asia Economic Journal, vol. 14, no.1, pp. 59-81, 2013.
F. A. Beag and N. Singla, “Cointegration, causality and impulse response analysis in major apple markets of India,” Agricultural Economics Research Review, vol. 27, no. 2, pp. 289-298, 2014.
M. S. Sadiq, N. Karunakaran, and I. P. Singh, “Integration of banana markets in India,” ICTACT Journal on Management Studies, vol. 4, no.2, pp. 764-781, 2018.
M. S. Sadiq, I. P. Singh, and M. M. Ahmad, “Market integration of sesame seeds in South Asia,” Alanya Academic Review, vol. 4, no.1, pp.143-155, 2020.
I. J. Udousung, G. S. Umoh, and J. T. Ekanem, “Impact of macroeconomic policies on capture fishery in Nigeria (1970-2000),” Global Journal of Management and Business Research, vol. 12, no. 20, 2012.
Published
How to Cite
Issue
Section
Copyright (c) 2021 Indonesian Journal of Agricultural Research
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
