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ABSTRACT
The study examines the role of
commercial banks in Agricultural development in Nigeria, spanning from
1986-2010. The study used Ordinary Least Squares (OLS) techniques for analyzing
the findings, from the study, support the view that commercial bank loans do
not reach real farmers. Commercial banks loan to the Agricultural sector has a
positive growth and significant at 5% level, contributing 67.65 percent
variations in Real Agricultural output in Nigeria. Real interest rate and real
exchange rate are both having positive growth, but not significant at 5% percent
level. The positive real interest rate shows that Investments in Agricultural
sector in Nigeria has a very high rate of return. The findings suggest that
real interest and exchange rates should be properly managed and periodically
reviewed so as to promote the growth of the Agricultural sector.
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