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An Empirical Analysis and the Impact of Road and Rail Transportation on Agricultural Output in Nigeria: 1990 to 2024

Isaac Batiyak Usman, Prof. John Aiyedogbon, Sunday Emmanuel Ologunla PhD, Nelson Christopher PhD

Abstract

Transportation plays a crucial role in agricultural output and livelihood of farmers in developing countries This study examines ‘‘the Empirical analysis and the impact of road, rail and pipeline transportation on agricultural output in Nigeria 1990 To 2024’’. Utilizing Agricultural Output (AO) as the dependent variable and road, rail, and pipeline transportation metrics as independent variables, the research use secondary data and employs econometric models such as descriptive statistics, Augmented Dickey-Fuller test, ARDL, error correction test to assess the significance and magnitude of these infrastructural components on agricultural output. The study result indicates that Augmented Dickey-Fuller tests confirm that AO and ROT are stationary at level, descriptive statistics reveal that all three variables are positively skewed and non-normally distributed, with ROT and RPT showing especially high levels of dispersion and kurtosis, the Augmented Dickey-Fuller test for the ROT variable strongly rejects the null hypothesis, ARDL Bounds test and subsequent Error Correction Model confirm a statistically significant long-run relationship between AO, ROT, and RPT. ROT exerts a strong and positive long-run effect on AO, while RPT is not significant in the long run. and the ARDL Bounds Test results indicate a strong long-run relationship among the variables in the long run, ROT has a significant positive impact on AO (coefficient = 0.2851, p < 0.01), while RPT is statistically insignificant the model has an excellent fit (R2 = 0.99998), no autocorrelation (Durbin-Watson ≈ 2.24). The findings from the study recommends some policy to Nigeria government to make effective decision on infrastructure development strategies due to the positive effect of Road and rail transportation on agricultural output in Nigeria, therefore, the study recommends that government should increase expenditure to maintain rail and road transportation network in all parts of Nigeria for easy movement of goods and passengers which will increase agricultural output and economic growth and development in Nigeria. P-ISSN 2695-186X

Keywords

Agricultural output; Road conditions; Rail and pipeline transport; transport costs; transport service

References

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