ABSTRACT

The study examined the effects of Cashew Nut production and export on economic growth of Nigeria (1980-2019). The study specifically estimated the trends of Cashew Nut production and export in Nigeria; estimated the rates of growth of Cashew Nut production and export, also forecast the doubling time in the growth rate of Cashew production and export in Nigeria; estimated the level of acceleration, deceleration or stagnation in the growth processes of Cashew Nut production and export; estimated the determinants of Cashew Nut production and exports in Nigeria; and determined the effects of Cashew Nut production and exports on economic growth in Nigeria. Secondary data were used for the study. Data collected were analyzed using descriptive statistics, exponential trend analysis and regression. Findings from the study showed a huge decline in Cashew Nut production of about 53.32% in 2013. From 2016 and 2017, the production of Cashew Nut increased at a very low rate of 1.18% and 1.74% respectively. The trend in export of Cashew Nut with shell in Nigeria from1986 to 2019 revealed a high level of fluctuation. The highest percentage increase in export was 2583.18% in 2012 and decrease was 93.13% in 2000. The result of exponential trend for Cashew Nut production and export in Nigeria from 1980 to 2019 showed positive coefficients of 0.073 and 0.145 respectively. The compound growth rate of production and export of Cashew Nut with shell were 7.57% and 15.60% respectively. The period required for Cashew Nut production and export to double the rate of growth were 9.25years and 4.49years respectively. Cashew Nut production and export decelerated and accelerated respectively. The values of R-squared and F-ratio were 0.983 and 228.80 respectively for the determinants of Cashew Nut production in Nigeria in the long-run and it was positively influenced by producer price, harvested area, quantity exported, government capital investment in agriculture and export value of Cashew Nut with shell. The rate at which Cashew Nut with shell production adjusts to the long-run equilibrium was 38.6% at the end of each period. The R-squared and F-ratio value were 0.956 and 63.399 respectively for the determinants Cashew Nut with shell export in Nigeria in the long-run and it was positively influenced by exchange rate, quantity of Cashew Nut produced, producer price, value of government credit to agriculture and external reserve, and negatively influenced by population growth. The rate at which Cashew Nut with shell export adjusts to the long-run equilibrium was 42.3% at the end of each period.  Cashew Nut with shell export had significant effect on economic growth in Nigeria. Among others the study recommended that there should be more investment in the production of Cashew Nut as well as replanting of old Cashew farms or estate with improved varieties by stakeholders in Cashew Nut industry and the yearly fluctuation in Cashew Nut with shell export in Nigeria should be controlled through policies that will enhance steady upwards trend in Cashew Nut export by government.