EFFECTS OF CAPITAL FLIGHT AND ITS MACROECONOMIC DETERMINANTS ON AGRICULTURAL GROWTH IN NIGERIA (1970-2013)

This study empirically examines the impact of capital fight and its macroeconomic determinants on agricultural growth in Nigeria from 1970 -2013. Data generated were analyzed using Unit root test, co-integration test, regression analysis. The study result found negative and insignificant relationship(P>0.05) between total capital flight and agricultural growth; meaning that capital flight has no direct impact on agricultural growth or the impact on agricultural growth is shadowed by the other macroeconomic variables in the system. Also, the stock of gross external debt (EXD) variable showed positive and statistically significant relationship (P<0.05) with agricultural growth. The result shows that a unit change in EXD will bring about 24% change in the growth of agriculture provided other factors are kept constant. Political instability (POL) variable has negative and significant effect on agricultural growth in Nigeria. The study recommends that Nigeria’s judicious use of the income accruing from loans and Foreign Direct Investment (FDI) is paramount if Agricultural growth is to be enhanced. Furthermore, the overall peace, security of lives and property and guaranty of investment by the government is essential therefore; Government should take concerted step to improve security of life and property in the country.