The Effect of Government Expenditure on Agricultural Output in Nigeria (1981-2018)
Keywords:
Government, Capital Expenditure, agricultural output, Nigeria and econometrics
Abstract
The research analyzed the effect of government spending on agricultural output in Nigeria (1981-2018) empirically. Time series data on agricultural output, recurring government spending on agriculture, agricultural government capital expenditure, and gross domestic product were collected over a period of 37 years from the statistical bulletin of the Central Bank of Nigeria (CBN). Descriptive and econometric analysis methods such as the Augmented Dickey-Fuller test, the Johanson co-integration test and the Ordinary Least Square (OLS) were applied in this research. The result revealed that capital and recurring expenditure on agriculture by the federal government were found to be positively linked to agricultural output. This study recommends that Nigeria's federal government should preserve quality and stability in its agricultural expenditure in order to achieve the significant productivity required.
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References
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Imoisi, A. I., Sogules, I. W. &Ekpeyoung, B. I. (2012).An Appraisal of Credit Facilities on Agricultural Output and Productivity in Nigeria: 1970-2010; British Journal of Humanities and Social Sciences November 2012, Vol. 7 (2)
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Mogues T, Morris L, Freinkman M, Adubi A, Ehui S (2008). Agricultural Public Spending in Nigeria. IFPRI Discussion Paper 00789 September.
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Mogues T., S. Fan and S. Benin (2015).Impact of public investments in and for Agriculture. European Journal of Development Research, 27(3), 337–352.
Madugu, A.J &Bzugu, P.M. (2012). The Role of Microfinance Banks in Financing Agriculture in Yola North Local Government Area, Adamawa State, Nigeria; Global Journal of Science Frontier Research Agriculture and Veterinary Sciences Vol.12 (8).
Nwosu, F. O., Oguoma, N.O., Ben-Chendo, N.G., and Henri-Ukoha, A. (2012). The Agricultural Credit Guarantee Scheme: Its Roles, Problems, And Prospects In Nigeria’s Quest For Agricultural Development; Researcher 2010;2 (2) Okezie, A. I., Nwosu, C., andNjoku, A.C. (2013).An assessment of Nigeria expenditure on the Agricultural sector: Its relationship with the agricultural output (1980 - 2011); Journal of Economics and International Finance, Vol. 5(5), pp. 177-186. DOI: 10.5897/JEIF2012.0471
Ololade R.A. &Olagunju F.I. (2013). Determinants of Access to Credit among Rural Farmers in Oyo State, Nigeria; Global Journal of Science Frontier Research Agriculture and Veterinary Sciences, Vol. 13(2).
Ochigbo, F.(2012). ‘Nigeria’s Agriculture Budget under 10%. The Nation Newspaper, Nigeria.
Olomola, A. and Kwabena, G. (2014). Loan demand and rationing among Small-scale farmers in Nigeria; International Food Policy Research Institute.
Okezie A., Nwosu, C. and Njoku, A. (2013). An assessment of Nigeria expenditure on the agricultural sector: Its relationship with agricultural output (1980 - 2011). Journal of Economics and International Finance, Vol. 5(5), pp. 177-186, August, 2013
Sauer J, DavidovaS.and Gorton M. (2012). Land fragmentation, market integration and farm efficiency: empirical evidence from Kosovo. Contributed Paper prepared for presentation at the 86th Annual Conference of the Agricultural Economics Society, University of Warwick, United Kingdom, 16 - 18 April 2012
World Development Indicators (2014). Washington, DC. http://data.worldbank.org/data- catalog/world-development-indicators.
World Bank (2007) Fertilizer use in African agriculture: lessons learned and good practice guidelines, WB Washington DC, Agricultural Policy Note 20433-RW.
Wangusi, C. and Muturi, W. (2015).Impact of Agricultural Public Spending on Agricultural Productivity: Case Study of Kenya; International Journal of Sciences: Basic and Applied Research (IJSBAR) (2015) Volume 24 No 4, pp 180-187
Chandio, A.A., Jiang Yuansheng, J., Sahito, M., andLarik, S.A. (2016). Impact of formal credit on agricultural output: Evidence from Pakistan; African Journal of Business Management, Vol. 10(8), pp. 162-168, DOI: 5897/AJBM2015.8042
Dori, N. A. (2016). The Impact of Central Bank of Nigeria’s Agricultural Credit Guarantee Scheme Fund on Agricultural and Economic Development of Nigeria; international journal of Political science and development, Vol. 4(3), pp. 63-74, DOI: 10.14662/IJPSD2016.015
Ebere, C. and Osundina, K. C. (2012).Government Expenditure on Agriculture and Economic Growth in Nigeria; International Journal of Science and Research (IJSR) ISSN (Online): 2319-7064
Ejike, R.D., Ohajianya, D.O. and Lemchi, J.I. (2013). Agricultural Credit Risk and Default Management by Banks in Imo State, Nigeria; Greener Journal of Agricultural Sciences, Vol. 3 (2), pp. 137-144, February 2013. DOI: http://dx.doi.org/10.15580/GJAS.2013.2.120512314
Ekwere, G. E. &Edem, I. D. (2014). Evaluation of Agricultural Credit Facility in Agricultural Production and Rural Development; Global Journal of Human-Social Science: B Geography, Geo-Sciences, Environmental Disaster Management Vol. 14(3)
Ewubare, D. B., andEyitope, J. A. (2015).The Effects of Public Expenditure on Agricultural Production Output in Nigeria; Journal of Research in Humanities and Social Science Volume 3 ~ Issue 11 (2015) pp: 07-23 ISSN(Online): 2321-9467 www.questjournals.org
FAO (2009).“World Agriculture towards 2030/2050; How to Feed the World in 2050. www.fao.org/economic/esa/esag/esag-papers/en/ [Oct. 12 2015].
FAO (2011).“Energy-smart food for people and climate”. Issue Paper. Rome: Food and Agriculture Organization of the United Nations.www.fao.org/economic/esa/esag/esag-papers/en/ [Oct. 12 2015].
Harerimana, B. (2016). Analysis of Government Spending on Agriculture Sector andits Effects on Economic Growth in Rwanda. A Thesis submitted to the University of Rwanda-College of Business and Economics (CBE) in partial fulfillment of the academic requirements for the award of Degree of masters of Science in economics
IMF (2013) World Economic and Financial surveys 2013: Regional Economic Outlook (REO): Sub Saharan Africa keeping the pace, IMF, 1-48
Imoisi, A. I., Sogules, I. W. &Ekpeyoung, B. I. (2012).An Appraisal of Credit Facilities on Agricultural Output and Productivity in Nigeria: 1970-2010; British Journal of Humanities and Social Sciences November 2012, Vol. 7 (2)
Ijaiya GT (2000). Economic Growth in Nigeria: An asymmetry of the Balanced Growth Doctrine in Usman A and Ijaiya GT (eds), selected essays on the contradictions of economic development theories. Ilorin: Haytee Publishing Co.
Kareem, R. O., Bakare, H. A., Ademoyewa, G. R., Ologunla, S. E., Arije, A. R. (2015).Nexus between Federal Government Spending on Agriculture, Agricultural Output Response and Economic Growth of Nigeria (1979-2013); American Journal of Business, Economics, and Management2015; 3(6): 359-366
Mogues T, Morris L, Freinkman M, Adubi A, Ehui S (2008). Agricultural Public Spending in Nigeria. IFPRI Discussion Paper 00789 September.
Matthew, A. and Mordecai, B. (2016). The Impact of Public Agricultural Expenditure on Agricultural Output in Nigeria (1981-2014); Asian Journal of Agricultural Extension, Economics & Sociology 11(2): 1-10, 2016; Article no.AJAEES.25491 ISSN: 2320- 7027
Mogues T., S. Fan and S. Benin (2015).Impact of public investments in and for Agriculture. European Journal of Development Research, 27(3), 337–352.
Madugu, A.J &Bzugu, P.M. (2012). The Role of Microfinance Banks in Financing Agriculture in Yola North Local Government Area, Adamawa State, Nigeria; Global Journal of Science Frontier Research Agriculture and Veterinary Sciences Vol.12 (8).
Nwosu, F. O., Oguoma, N.O., Ben-Chendo, N.G., and Henri-Ukoha, A. (2012). The Agricultural Credit Guarantee Scheme: Its Roles, Problems, And Prospects In Nigeria’s Quest For Agricultural Development; Researcher 2010;2 (2) Okezie, A. I., Nwosu, C., andNjoku, A.C. (2013).An assessment of Nigeria expenditure on the Agricultural sector: Its relationship with the agricultural output (1980 - 2011); Journal of Economics and International Finance, Vol. 5(5), pp. 177-186. DOI: 10.5897/JEIF2012.0471
Ololade R.A. &Olagunju F.I. (2013). Determinants of Access to Credit among Rural Farmers in Oyo State, Nigeria; Global Journal of Science Frontier Research Agriculture and Veterinary Sciences, Vol. 13(2).
Ochigbo, F.(2012). ‘Nigeria’s Agriculture Budget under 10%. The Nation Newspaper, Nigeria.
Olomola, A. and Kwabena, G. (2014). Loan demand and rationing among Small-scale farmers in Nigeria; International Food Policy Research Institute.
Okezie A., Nwosu, C. and Njoku, A. (2013). An assessment of Nigeria expenditure on the agricultural sector: Its relationship with agricultural output (1980 - 2011). Journal of Economics and International Finance, Vol. 5(5), pp. 177-186, August, 2013
Sauer J, DavidovaS.and Gorton M. (2012). Land fragmentation, market integration and farm efficiency: empirical evidence from Kosovo. Contributed Paper prepared for presentation at the 86th Annual Conference of the Agricultural Economics Society, University of Warwick, United Kingdom, 16 - 18 April 2012
World Development Indicators (2014). Washington, DC. http://data.worldbank.org/data- catalog/world-development-indicators.
World Bank (2007) Fertilizer use in African agriculture: lessons learned and good practice guidelines, WB Washington DC, Agricultural Policy Note 20433-RW.
Wangusi, C. and Muturi, W. (2015).Impact of Agricultural Public Spending on Agricultural Productivity: Case Study of Kenya; International Journal of Sciences: Basic and Applied Research (IJSBAR) (2015) Volume 24 No 4, pp 180-187
Published
2020-11-30
How to Cite
ATAYI, A., Boniface, J., Bobola, A., & Olorunrinu, A. (2020). The Effect of Government Expenditure on Agricultural Output in Nigeria (1981-2018). GPH-International Journal of Applied Management Science, 3(11), 01-14. Retrieved from https://gphjournal.org/index.php/ams/article/view/329
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