IMPACT OF MONETARY POLICY ON VULUME OF NIGERIA'S AGRICULTURAL EXPORT GROWTH: ADYNAMIC MODEL APPROACH.

Abstract

The ultimate objective of any fiscal policy is to entrench financial stability and simulate economic growth Major economic Sectors (agriculture, manufacture and industrial) are found to have responded drastically to changes that occur in financial policy, The volume of agricultural output are significantly affected by prices movements, which display curiously large variation across crops, regions and time period. Even" commercial interest rate, exchange rate and world prices of agricultural commodities might also seriously influence the seasonally output when such crops are pushed forward for involve international trade . The paper describes the major monetary regimes that have been implemented in the last three decades and tis Influence on agricultural output. The data used in this work was extracted from CBN Statistical Bulletin, Annual reports, Bureau Statistics Abstract of Statistics publications. In this paper, a dynamic regression model was to estimating the real sector Nigeria's agricultural export volume in response to monetary policy by the financial regulator (i.e. Central Bank of Nigeria). The study revealed that exchange rate volatility has a negative effect on agricultural exports, while price volatility has a positive effect volume of agricultural trade. Thus, the more volatile the exchange rate changes, the lower the income earnings of subsequently also leads to a decline in output production and a reduction in export trade.