Department of Economics, Federal University, Wukari
Online published on 15 February, 2014.
The research investigated the effects of oil and gas extraction on cassava output in Eleme Local Government Area of Rivers State between 1986–1998 and 1999- 2011. An OLS regression equation was employed in conjunction with other econometric tests like ADF unit root test and Chow breakpoint test for comparative analysis. The regression results show that gas flaring and cassava seed planted negatively affected cassava output from 1986–1998 while oil spillage, gas flaring and land used for cultivation negatively affected cassava output from 1999–2011. The chow test confirms the inertia effect of the independent variables on the dependent variable. This was consistent with our a priori expectation that, increased oil spillage and gas flaring have negative economic consequences on output. Based on such findings, recommendations were made for the operators to use modern technologies of extraction, regular monitoring of oil production activities and facilities.
Oil and Gas, Extraction, Cassava output, Eleme LGA, Rivers State