Effect of Climate Change on Agricultural Productivity in Nigeria (1980-2014).

ABSTRACT

The stock market plays an important role in the Nigerian economy in the sense that it mobilizes domestic resources and facilitates savings and investment.

It impacts positively on the economy by providing financial resources through its intermediation process for financing long term projects. The main objective of the study is to analyze the effect of the stock market on the growth of the Nigerian economy.

The data used is a secondary data collected from the central bank of Nigeria statistical bulletin The analysis scope covered a period of thirty-four years spanning from 1980-2014.

The econometric method adopted is the Ordinary Least square method (OLS), Augmented Dickey-Fuller, Unit root test, Cointegration, and Error correction model.

The variables of the model include the Gross domestic product (GDP) as the dependent variable and market capitalization, total new issues and value of listed shares are independent variables.

The result shows that total new issues and value of listed shares are statistically significant while marketing capitalization statistically insignificant.

This research recommends that there is need to introduce and implement policies that will increase the level and size of Market Capitalization in the Nigerian Stock Market by the government through the Central Bank as an increase in Market Capitalization will surely increase fund availability for desired investment which in turn will increase the productivity of the Nation.

The positive impact of total New Issues is an indication that organizations operating in the country should open access to the public for investment and by so doing make returns available to the investors thereby increasing an average investors’ income.

INTRODUCTION

1.1 Background of the Study

has been identified as one of the most threaten environmental hazard of the 21st century, climate change effect is vast and agricultural productivity (especially food production) happens to be one of its worst hits.

The ranges from sea-level rise with its attendant consequences and includes fiercer weather, increased frequency, and , floods, hurricanes, droughts, increased frequency of fires, poverty, malnutrition, and series of health and socio-economic consequences (von Braun et al, 2008).

Climate change is described as a that persists for an extended period, typically for decades or longer(Akinbobola, Adedokun and Nwosa, 2015).

It includes a shift in the frequency and magnitude of sporadic weather events as well as the slow continuous rise in global average surface temperature (IPCC, 2001).

Agriculture is a major activity that is essential for human survival as it produces basic commodities for society, provides food for people and gainful employment for the majority of Nigerians (Alawa, Asogwa, and ikelusi, 2014).

The , particularly in Northern Nigeria is large and often culminates in climate hazards especially hoods and droughts with their devastating effects on food production and associated catastrophic consequences (Jude et. al., 2015).

By virtue of Nigeria’s location primarily within the lowland humid tropics, the country is generally characterized by a high-temperature regime almost throughout the year. The mean maximum temperature in the far South is between 30°C-32°C while in the North it is between 36°C-38°C.

REFERENCES

Ajetomobia, J., Abiodun, A. and Hassan, R. (2011).Impacts of Climate Change on Rice Agriculture in Nigeria. Tropical and Subtropical Agroecosystems, Vol. 14, pp. 613 -622 

Akinbobola. T. O., Adedokun. S. A., and Nwosa. P. I. (2015), The Impact of Climate Change on Composition of Agricultural Output in Nigeria. American Journal of Environmental Protection, vol. 3, no. 2: 44-47. doi: 10.12691/env-3-2-1.

Alawa, D.A., Asogwa, V.C. and Ikelusi, C.O. (2014) Measures for Mitigating the Effects of Climate Change on Crop Production in Nigeria. American Journal of Climate Change, 3, 161-168. http://dx.doi.org/10.4236/ajcc.2014.32015

Apata T. G., Ogunyinka A, Sanusi R. A., and Ogunwande S (2010). Effects of global climate

change on Nigerian Agriculture: An empirical analysis. Paper presented at the 84th annual conference of Agricultural Economics Society held Edinburgh, Scotland, pp 345-351.

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