This study investigates a relationship between agriculture and
manufacturing industry output in Nigeria from 1982-2015, using the
Granger causality, co-integration and error correction techniques.
Empirical evidence reveals a bidirectional relationship between the
sectors. Although, a positive and significant relationship exists in the
short and long-run estimates, a long-run divergence from the vector
error correction model suggest that changes in agricultural productivity
are not restored to equilibrium, given that macroeconomic factors
distort the linkage. Policy implications indicate that macroeconomic
stability is a necessary condition for agricultural and manufacturing
sectors to foster economic growth.