International Development Agencies and Per Capital Gross Domestic Product in Nigeria

This study provides econometrics evidence on the role of international development agencies in boosting per capita grossdomestic product in Nigeria. The agencies covered include the United States Agency for International Development,International Fund for Agriculture Development and Department for International Development. In addition to theseagencies, official development assistance (ODA) from Development Assistance Committee (DAC) was introduced inthe model as part of the exogenous variables. The data required were sourced from World Development Indicators andanalyzed with a combination of cointegrating regression model and error correction mechanism (ECM). It was observedfrom the cointegration test results that the variables are cointegrated. The cointegrating regression estimates indicate thatdevelopment assistance from Department for International Development has significant positive relationship with per capitaGDP. 1 percent increase in development financing from DFID increases per capita GDP by 0.268 percent. On the contrary,funds from United Sates Agency for International Development impact negatively on per capita GDP in the long run. Moreso, the parsimonious ECM reveals that financial support from International Fund for Agriculture Development is positivelinked to per capita GDP growth in the short run. The error correction estimate (-0.3617) suggests that short run deviationsin the model are corrected at a speed of 36 percent. Based on the findings, it is recommended that policy makers shouldprioritize key sectors with high potentials of inclusive growth in the allocation of development assistance from internationaldevelopment agencies in order to ensure the participation of the population in the share of the growth process.