A Publication of the Department of Agricultural & Applied Economics, Rivers State University, Port Harcourt.
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International Journal of Applied Economics, Agriculture and Management Sciences

ARTICLE SUMMARY

Title: Assessing The Impact Of Government Expenditure On Agricultural Output In Nigeria
Author(s): Oriakhi Linda Osarogie, Osasogie Daniel Izevbuwa, Ekunwe Peter Ayodeji & Osifo Agharese
Abstract: This paper examined the impact of Government expenditure on agricultural output in Nigeria. Data for the study were collected mainly from secondary sources from 1981 to 2018 covering a period of 38 years. Inferential statistics such as Co-integration Test and Error Correction Model (ECM), Logit Regression model and Augmented Dickey-Fuller (ADF) test were employed to analysis the data. From the study, the result of Error Correction Model indicated that private investment, precipitation, rural population, and electricity are significant determinants of agricultural output per farmer. The result of the Logit Regression model revealed that government capital expenditure, private investment, foreign direct investment, rainfall, rural population, and electricity were key drivers that impacted government capital expenditure on agricultural output per farmer. The result of augmented Dickey-Fuller test indicates that all variables included in the model were stationary at first differentiation (1(1)) except for the logs of rural population and foreign direct investment. The study demonstrated that government capital expenditure had long run relationship with agricultural output. Overall, the significant determinants of agricultural output in this study, were government capital expenditure, private investment, Foreign Direct Investment, rainfall, rural population, and electricity which means if the past government capital agricultural expenditure, private investment, Foreign Direct Investment, rainfall, rural population, and electricity increased by 1% respectively, this would invariably increase agricultural output per farmer in the long-run. The study recommended that government’s agricultural expenditure should be adjusted to place emphasis on capital expenditure and to ensure that the capital budget was implemented fully. Government agricultural expenditure should also be prioritized to favour investments in rural electrification, research and economy development that would improve agricultural output in Nigeria.
Keywords: Agricultural Output, Government Expenditure and Regression analysis

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The International Journal of Applied Economics, Agriculture and Management Sciences (IJAAMS) is a publication of the Department of Agricultural & Applied Economics of the Rivers State University, Port Harcourt, Rivers State, Nigeria [...]

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