CAUSAL RELATIONSHIP BETWEEN TECHNOLOGIES OF CASHLESS POLICY AND AGRICULTURAL SECTOR OUTPUT IN NIGERIA

Camillus N. Okuma (PhD), Cyprian N.J. Nwoko, Chinedu Blessing-Mike Obialor

Abstract


This study examines the causal relationship between the technologies of cashless policy and agricultural sector output in Nigeria. Ex-post facto research design was employed and the annual time series data for various years were obtained from Central Bank of Nigeria (CBN) statistical bulletin. Unit Root Test, Engle-Granger Co-integration Test, Error Correction Model (ECM) Test and Granger Causality Test were employed in the analyses. In the model, technologies of cashless policy are proxied by Automated Teller Machine Transactions (ATM), Point of Sales Transactions (POS), Mobile Payment Transactions (MPT), while Prime Lending Rate (PLR) and Deposit Rate (DR) were used as control variables. Results of the analyses revealed that the adjusted R-squared value is 91% showing that 91% of the changes that occurred in the agricultural sector output are influenced by the changes in the technologies of cashless policy. ATM and MPT have coefficient value of -0.000328 and -0.003405 respectively with the P-value of 0.3276 and 0.2463 respectively. The POS has coefficient value of 0.010574 and P-value of 0.0478 while the Prob(F-statistic) value is less the 0.005 which indicated that cashless policy technology variables have significant effect on the agricultural sector output in Nigeria. The result of granger causality test showed more support for the existence of supply leading hypothesis hence the study concluded that technologies of cashless policy predicts the agricultural sector output in Nigeria. Based on this, we recommend that the services of ATM, MPT and POS should be upgraded by ensuring availability of power supply, skilled labour, adequate security, reduction of illiteracy rate , organizing of workshops and seminars for both staff and users of the cashless policy technologies in Nigeria.

 


Keywords


Technology, Cashless Policy, ATM, POS, MPT, Agricultural Sector Output.

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