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THE IMPACT OF SELECTED MACRO-ECNONOMIC VARIABLES ON LIVESTOCK PRODUCTION IN NIGERIA, 1972 – I994
ABSTRACT
Livestock sector plays a tangible role in the Nigerian economy, even though, it is still far from attaining self sufficiency. Thus government instituted a series of macroeconomic policies designed to improve the production of this sector. This study was carried out to determine the effect of exchange rate on livestock production over time, to assess the effect of other selected macroeconomic variables (interest rate, money supply, inflation rate, wage rates, producer prices and import levels of livestock items) on livestock production and to estimate the elasticities of livestock production with respect to the selected macroeconomic variables. The regression results revealed a positive relationship between livestock production and each of the policy variables (exchange rate, interest rate, wage rates, producer price and import level of livestock items) though the interest rates’ coefficient is not significant. Also a negative insignificant relationship exists between livestock production and each of the macroeconomic variables, money supply and inflation rate. The elasticities of livestock production with respect to each of the policy variables-exchange rate, interest rate, money supply, inflation rate, wage rate, producer prices and import level of livestock items was found to be 0.0696, 0.112767, – 007323, – 0.063678, 0.362937, 0.437438 and 0.22085 respectively indicating that varying the level of the policy variables by one unit will lead to increase in the livestock production by the corresponding amount of elasticities.
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