Transport Infrastructure, Institutional Quality and Agricultural Sector Performance in Nigeria

Abstract

This research paper investigated the interaction among transport infrastructure, institutional quality and agricultural sector performance in Nigeria using annual data from 2000 to 2022. The ADF unit root test, Auto-regressive Distributed Lag (ARDL) bounds test, and Dynamic Ordinary Least Squares (DOLS) technique were deployed in the analysis of data. The empirical findings revealed that road infrastructure quality (LNROADQ) significantly influenced agriculture sector development. However, port infrastructure quality (LNPORTQ) was shown to negatively impact agriculture sector performance. Furthermore, the result revealed that institutional quality (LNREQ) significantly contributed to agriculture sector development in Nigeria. Therefore, the government should invest heavily in road transport, giving priority to roads that are mostly used for economic purposes such as agriculture, oil transportation and other economic-driven activities. Also, institutional quality should be improved.