The impact of foreign direct investment, capital formation and technology on agricultural output in Nigeria

Abstract

This study looked at how foreign direct investment, capital formation, and technology influence agricultural output in Nigeria. The study made use of the two most often utilized unit root tests, Augmented Dickey-Fuller (ADF) and Philips Perron (PP). In addition, the relationship was established utilizing the Auto Regressive Distributed Lagged ARDL bound test of cointegration. The study's findings revealed a substantial, negative association between foreign direct investment and agricultural output. The use of technology was found to boost agricultural productivity in a favorable manner but statistically insignificant. Furthermore, capital
formation and exchange rates have a large and favorable impact on agricultural output. The research suggested that, to attract foreign direct investment (FDI) into Nigeria's agriculture sector, the government must demonstrate a deeper commitment to multi-national investment guarantee organizations. This will not only boost international investors' in agricultural technology trust, but will also soothe their fears of expropriation. The agriculture industry urgently needs to refocus and change its investment patterns.