ABSTRACT

The study was carried out in Nigeria with the main objective - to determine the effects of macroeconomic variables on agribusiness and economic performance in Nigeria. Secondary data obtained from the Central Bank of Nigeria and World Development Indicator Data base 2017 within the period 1970 to 2016 were used for the analysis. Endogenous growth theory was used as the base theory for this analysis. Analytical techniques applied included unit root, Granger causality, ARDL co-integration, chow tests and ordinary least square. Granger causality test revealed a bi-lateral relationship between capital, non-oil export and agribusiness performance, while other variables exhibited unilateral relationships. Capital, Inflation, Labor, Non oil export, had positive and significant effects on agribusiness performance. Food import, Foreign private investment, Real exchange rate, Real gross domestic product had positive but insignificant effects on agribusiness performance.  The results revealed that agribusiness had positive and significant effects on economic performance of Nigeria. Chow testing revealed that agribusiness performance was not the same during regulated and deregulated economy. Test on overall fitness of the models and stability revealed that the models were stable and normally distributed with no heteroscadascity or residual autocorrelation. The policy implication of this work is that, macroeconomic variables are important determinants of   agribusiness performance. Appropriate Institutional frame work and policies ought to be in place to make agribusiness value chain inclusive and dynamic.