International Journal of Agricultural Policy and Research

Original Research Article

Economic assessment of government expenditure on agricultural sector with relevance to the economic growth (1981- 2017)

Chiekezie Njideka Rita, Nkamigbo Darlington Chineze and Ozor Maurice Uche


1Department of Agricultural Technology, Anambra State Polytechnic, Mgbakwu, Nigeria, West Africa.
2Departmrnt of Agricultural Economics and Extention, Nnamdi Azikiwe University, Awka, Nigeria, West Africa.

*Corresponding Author E-mail: chinezenkamigbo(at)yahoo.com

 

 

Chiekezie Njideka Rita

Nkamigbo Darlington Chineze

Ozor Maurice Uche


Article Number: IJAPR.20.010  |   Pages: 97-106  |   Vol. 8 (4), August 2020   |   DOI: https://doi.org/10.15739/IJAPR.20.010

 Received: September 12, 2019  Accepted: December 12, 2019  Published: August 18, 2020

Abstract

This study examined economic assessment of government expenditure on agricultural sector in Nigeria, in order to establish if it has any direct link with economic growth. The specific objectives were to examine the relationship between recurrent expenditure and economic growth, ascertain whether there is a relationship between capital expenditure and economic growth, determine if there is any relationship between commercial banks loans and advances to agriculture and economic growth, examine the relationship between agricultural credit guaranteed scheme releases and economic growth and examine the impact of government expenditure on agriculture and agricultural sector output on economic growth. A time series data from 1981 – 2017 sourced from the Central Bank of Nigeria was collected for the analysis. Real gross domestic product (RGDP) was used as a proxy to economic growth while recurrent expenditure, capital expenditure, commercial banks loan and advances to agricultural sector and agricultural credit guarantee scheme loans were used as indicators of government expenditure. Pearson correlation and Ordinary least square techniques were employed for analyzing the secondary data collected. The results reveal that there is a substantial positive correlation between economic growth and recurrent expenditure, a very high positive correlation between economic growth and capital expenditure, a very high positive correlation between economic growth and commercial banks loans and advances, a negligible positive correlation between economic growth and agricultural guaranteed scheme loans and that government expenditure on agriculture and agricultural sector output have significant impact on economic growth. Based on the findings, it was recommended that government should empower the farmers with equipment, capital and technology, formulate and implement policies aimed at improving agricultural sector spending in Nigeria.

Keywords:

Economic growth, agricultural expenditure, agricultural output

How to Cite this Article

Chiekezie NR, Nkamigbo DC Ozor MU (2020). Economic assessment of government expenditure on agricultural sector with relevance to the economic growth (1981- 2017). Int. J. Agric. Pol. Res. 8(4):97-106.

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