Analysis of Intersectoral Linkages between Agriculture and Industry in Nigeria
This paper uses time series data to analyse the relationship between agricultural growth and industrial performance for the three-decade period 1966 - 1995. Agricultural growth influences industry in many ways. It provides the raw materials needed by industry; it creates direct demand for the output of consumption goods of industries and indirect demand for the output of basic and capital goods industries. Analysing the input-output coefficients, the paper found that most primary and secondary commodity groups have weak backward and forward linkages, while the quantitative relationships between agricultural growth and industrial performance were non-significant, even when lagged. However, the link between industrial growth and the food component of agricultural growth rate emerges positive, as food is expected to play a significant role during the agroindustrial transformation processes. Power generation, as expected, positively influenced industrial performance, while transport infrastructures and capital goods industries have negligible impact as a result of poor performance of these sectors. The policy implications of the analysis include the need to build and expand the capital goods-production capacity of the economy; enhance power generation and distribution, drastic improvement in transport infrastructures, especially roads; research and developmentof local raw materials, including storage/preservation, integrated agroindustrial planning and better investment information management.
Abudu, M.I. (1999). Analysis of inter-sectoral linkages between agriculture and industry in Nigeria. Occasional Paper, No. 23. 1 - 28.