Role of income distribution and consumption expenditure in agricultural output: case of Nigeria

Abstract

PurposeThis study quantifies empirically the induced impact of income distribution and consumption expenditure on the structures of agriculture production of Nigerian economy.Design/methodology/approachThe study calibrates an extended input-output model on a social accounting matrix (SAM) for Nigeria for the year 2010. Moreover, the study conducts a dispersion analysis to identify the key agriculture sectors/subsectors both in exogenous and endogenous setup.FindingsThis study presents an empirical analysis of propagation in the structure of production particularly in the structure of agriculture sector. It combines the aggregate and the disaggregated levels of analysis and identifies the key sectors/subsectors both in the exogenous and endogenous setup. The comparison of both findings confirms that the composition of income distribution and consumption expenditure significantly influences the composition and the aggregated and disaggregated order of structure of agriculture production.Originality/valueKnowledge of interindustry connections is vital in policy implications since the policy makers prefer strongly interconnected sectors to the sectors with poor industry linkages. These connections are estimated as forward and backward linkages, which provide indices to set the criteria for key sectors identification. This study presents an empirical analysis of propagation in the structure of production particularly in the structure of agriculture sector. It combines the aggregate and the disaggregated levels of analysis and identifies the key sectors/subsectors both in the exogenous and endogenous setup.