The nexus of income, expenditure, and output in agribusiness amid global crises: The case of Nigeria

Purpose: This study has two objectives. First, it incorporates income and expenditure accounts into the Nigerian economy's production structures. Second, it conducts an impact analysis on the nexus of income and expenditure to examine the economic impact of reduced cocoa bean exports during COVID-19. Design/methodology/approach: The study employs an Extended Multisectoral Model (EMM) on a social accounting matrix (SAM) to incorporate the income and expenditure of the institutional sectors into the production structures. Later, the study identifies key commodities using linkage analysis. Furthermore, the study empirically investigated the economic impact of cocoa bean export reduction amid COVID-19. Findings: The findings posit that 'motor vehicles & assembly,’ ‘construction,' 'transport; road, water, and rail,' and 'financial institutions' remain key commodities in the exogenous and endogenous income-expenditure setups, underlining their significance in the economy. However, commodities such as ‘cassava unprocessed,’ ‘oil refining,’ ‘fertilizers & chemical products,’ ‘plastic & rubber products,’ and ‘broadcasting,’ which were key in the exogenous setup, do not retain their dominance in the endogenous setup. On the other hand, the impact analysis finds a decline in GDP, household consumption, public expenditure, and aggregate investments by 0.892 %, 0.884%, 0.824%, and 0.902% respectively.