Agricultural Investment Risk Relationship to National Domestic Production
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This empirical case study investigated the uncertainty of agricultural investment schemes in Nigeria and their relationship to national domestic production. Government administrations have invested a substantial amount of money into the agricultural
sector, yet thus far, there have been very few
visible results to show for it. The private
sector does not seem to be interested in
developing agriculture even with
government incentives. The purpose of this
study is to identify investment risk factors
for national agriculture development as
perceived by business stakeholders.
Ordinary Least Square (OLS) was then used
to examine the strength of the cause-effect
relationship for the agricultural investment
factors in terms of expected domestic
production. The findings were that there was
no significant relationship between
commercial bank credit granting to
businesses for agricultural development and
therefore no impact on national domestic
production. On the other hand, the
regression analysis did support the
hypotheses that there was a significant
relationship between government funding
towards the agricultural sector and national
domestic production as well as a significant
relationship between the public agriculture
credit guarantee scheme and national
domestic production, respectively. Based on
this positive finding, the study closes with
several unique recommendations for policy
makers in order to stimulate the investment
into the agricultural sector to increase
national production.
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Keywords
HG Finance