Government Agricultural Spending and Agricultural Output in Nigeria (1999-2012)

International Journal of Research and Innovation in Social Science (IJRISS) | Volume III, Issue III, March 2019 | ISSN 2454–6186

Government Agricultural Spending and Agricultural Output in Nigeria (1999-2012)

Dr. Ikwuba Agnes

Department of Sociology, Benue State University Makurdi, Benue State-Nigeria

Abstract: – This paper examines the effect of government agricultural spending on agricultural output in Nigeria. The model built for the study proxy Agricultural Output as the endogenous variable, a function of rate of government expenditure on agriculture, management level (dummied), technological level (dummied), labour in use proxy as the exogenous variables. Annual time series data was gathered from central bank of Nigeria, statistical bulletin, national bureau of statistic (NBS) CBN economic and financial Review bulletin and CBN annuals reports spanning from 1999 to 2012. The study used descriptive test statistic and econometric techniques of Augmented Dickey- Fuller (ADF) unit root test, and Engle Granger single line co-integration test for empirical analysis. The results of unit root suggested that, all variables in the model are stationary at a level. The co-integration test shows that, long- run equilibrium relationship exist among the variables. The study recommends that measures should be undertaken to drive agricultural sector through consistent policies, robust funding, and infrastructural development, judicious use of allocated resources and above all, a genuine democracy and good governance in Nigeria in order to achieve a corresponding output/performance of the sector in Nigeria.

Keywords: Agriculture, Government Expenditure, Capital and Technology

JEL Classification: E22, Q14, O33

I. INTRODUCTION

A strong and an efficient agricultural sector will enable a country to feed its growing population, generate employment, earn foreign exchange and provide raw materials for industries worldwide. The sector has a multiplier effect on any nation’s industrial and economic development both developed and developing economies because of the multifunctional nature of agriculture.

In developing countries particularly Africa, agriculture serves as the mainstay of the continent and that the public sector absorbs a relatively large share of country’s economic resources. The development process itself leads to a variety of economic activity which in turn leads to further growth in the economy.

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