IMPACT OF FOREIGN DIRECT INVESTMENT ON DISAGGREGATED AGRICULTURAL SECTOR IN NIGERIA

Abstract

Foreign direct investment is usually thought to have the responsibility of sustaining the agricultural sector when invested in, and it tends to promote growth and development. From 1981 to 2019, this study looked at the impact of foreign direct investment on Nigeria's disaggregated agricultural sector. The study adopted ARDL model to analyze the data. The variables were found to be stationary using an augmented Dickey-Fuller test. The ARDL bound test was used to examine the long-term relationship between the variables. It was discovered that foreign direct investment, foreign portfolio investment, credit to the private sector, net export, inflation rate, money supply, and rainfall in the agricultural sector of Nigeria have a positive and significant impact on crop production, livestock production, forestry production, and fishery production. The paper concludes with a policy recommendation that the government should create a stable and conducive environment capable of supporting the agricultural sector's growth potential and the flow of international investment, and that the government should also prioritize the agricultural sector's development by increasing government budgetary allocation to the sector.