IDEAS home Printed from https://ideas.repec.org/a/ags/agreko/346839.html
   My bibliography  Save this article

Public sector expenditure in agriculture and economic growth in Nigeria: An empirical investigation

Author

Listed:
  • Tijani, Akeem A.
  • Oluwasola, Olumemino
  • Baruwa, Olayinka I.

Abstract

Available literature has shown that the impact of total government expenditure as well as government expenditure by type of economic growth is mixed. This study extends this literature by examining the impact of government expenditure on agriculture, on Nigeria's economy from 1970 to 2006. General-to-specific methodology of time series econometrics was utilised to arrive at the preferred error correction model that was used to determine the impact of government spending on agriculture and on economic growth. In consonance with economic theory, the results showed that the total expenditure on agriculture had a positive significant effect on Nigeria's economic growth in the long run with elasticity of 0.32 during the period under review. The results also showed that economic growth was independent of recurrent expenditure, but dependent (positively) on capital expenditure in the long run with elasticity of 0.36. The implication is that agriculture should be given priority in budgetary allocation and capital spending to promote economic growth in Nigeria.

Suggested Citation

  • Tijani, Akeem A. & Oluwasola, Olumemino & Baruwa, Olayinka I., 2015. "Public sector expenditure in agriculture and economic growth in Nigeria: An empirical investigation," Agrekon, Agricultural Economics Association of South Africa (AEASA), vol. 54(2), September.
    • Handle: RePEc:ags:agreko:346839
    DOI: 10.22004/ag.econ.346839
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/346839/files/Public%20sector%20expenditure%20in%20agriculture%20and%20economic%20growth%20in%20Nigeria%20%20An%20empirical%20investigation.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.346839?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Afonso, António & Furceri, Davide, 2010. "Government size, composition, volatility and economic growth," European Journal of Political Economy, Elsevier, vol. 26(4), pages 517-532, December.
    2. Philip Grossman, 1988. "Government and economic growth: A non-linear relationship," Public Choice, Springer, vol. 56(2), pages 193-200, February.
    3. Ram, Rati, 1986. "Government Size and Economic Growth: A New Framework and Some Evidencefrom Cross-Section and Time-Series Data," American Economic Review, American Economic Association, vol. 76(1), pages 191-203, March.
    4. Barro, Robert J, 1990. "Government Spending in a Simple Model of Endogenous Growth," Journal of Political Economy, University of Chicago Press, vol. 98(5), pages 103-126, October.
    5. Grossman, Philip J, 1988. "Growth in Government and Economic Growth: The Australian Experience," Australian Economic Papers, Wiley Blackwell, vol. 27(50), pages 33-43, June.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Facchini, François & Melki, Mickaël, 2013. "Efficient government size: France in the 20th century," European Journal of Political Economy, Elsevier, vol. 31(C), pages 1-14.
    2. Facchini, François & Melki, Mickaël, 2013. "Efficient government size: France in the 20th century," European Journal of Political Economy, Elsevier, vol. 31(C), pages 1-14.
    3. Mohammed Daher Alshammary & Norlin Khalid & Zulkefly Abdul Karim & Riayati Ahmad, 2022. "Government expenditures and economic growth in the MENA region: A dynamic heterogeneous panel estimation," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 27(3), pages 3287-3299, July.
    4. repec:vrs:joheec:v:1:y:2014:i:1:p:1-30:n:1 is not listed on IDEAS
    5. repec:ags:ijag24:346839 is not listed on IDEAS
    6. L. Di Matteo & Tom Barbiero, 2017. "Economic Growth and the Public Sector: A Comparison of Canada and Italy, 1870†2013," Working Papers 069, Toronto Metropolitan University, Department of Economics.
    7. Shin-Chyang Lee & Shang-Fen Wu & Cheng-Te Lee, 2017. "Government Size and Stochastic Growth," Australian Economic Papers, Wiley Blackwell, vol. 56(3), pages 219-227, September.
    8. ZAREEN, SHUMAILA & Qayyum, Abdul, 2014. "An Analysis of the Impact of Government Size on Economic Growth of Pakistan: An Endogenous Growth," MPRA Paper 85426, University Library of Munich, Germany, revised 2015.
    9. INCEU Adrian Mihai & ZAI Paul, 2012. "Budget Revenues In Eu-27," Revista Economica, Lucian Blaga University of Sibiu, Faculty of Economic Sciences, vol. 0(4), pages 342-351.
    10. GAVRILETEA Marius Dan & MOGA Aura Carmen, 2012. "Economic Crisis - Understanding The Causes To Analyse Possible Solutions," Revista Economica, Lucian Blaga University of Sibiu, Faculty of Economic Sciences, vol. 0(4), pages 283-289.
    11. Sefa Awaworyi Churchill & Mehmet Ugur & Siew Ling Yew, 2017. "Does Government Size Affect Per-Capita Income Growth? A Hierarchical Meta-Regression Analysis," The Economic Record, The Economic Society of Australia, vol. 93(300), pages 142-171, March.
    12. AVRAM Veronel & TOGOE Greti Daniela, 2012. "Considerations Regarding The Patrimonial Inventory In The Spirit Of European Acconting Regulations," Revista Economica, Lucian Blaga University of Sibiu, Faculty of Economic Sciences, vol. 0(4), pages 3-7.
    13. BATRANCEA Ioan & BATRANCEA Maria & MOSCVICIOV Andrei, 2012. "Financial Performance Of Banks Analysis," Revista Economica, Lucian Blaga University of Sibiu, Faculty of Economic Sciences, vol. 0(4), pages 26-31.
    14. DUMITRESCU Serju & AVRAM Marioara, 2012. "Views Regarding The Organization Of The Activities Relatedto The Prevention And Combat Against Money Laundering," Revista Economica, Lucian Blaga University of Sibiu, Faculty of Economic Sciences, vol. 0(4), pages 238-244.
    15. MOSCALU Maricica, 2012. "Business Failure Prediction For Romanian Smes Using Multivariate Discriminant Analysis," Revista Economica, Lucian Blaga University of Sibiu, Faculty of Economic Sciences, vol. 0(4), pages 457-466.
    16. MIHAI Irina & CIOBAN Alexandra Narcisa & BALAN Ioana, 2012. "Approach Through Practical Research Of Intellectual Capital," Revista Economica, Lucian Blaga University of Sibiu, Faculty of Economic Sciences, vol. 0(4), pages 430-435.
    17. CIUDIN Adrian & VASIU Diana, 2012. "Fiability Of Pivot Point Indicator," Revista Economica, Lucian Blaga University of Sibiu, Faculty of Economic Sciences, vol. 0(4), pages 135-140.
    18. ZUGRAVU Bogdan-Gabriel & SAVA Anca-Stefania, 2012. "Public Expenditures Impact On Economic Growth: Evidences For Romania," Revista Economica, Lucian Blaga University of Sibiu, Faculty of Economic Sciences, vol. 0(4), pages 665-671.
    19. SAVA Catalina & RADU Ioana, 2012. "Challenges Of Operating And Complying With The Ucits Iv Directive," Revista Economica, Lucian Blaga University of Sibiu, Faculty of Economic Sciences, vol. 0(4), pages 577-583.
    20. BECA Marusa & SERBAN Elena Claudia, 2012. "The Connection Between The Lump-Sum Tax And The Smes Turnover In Romania," Revista Economica, Lucian Blaga University of Sibiu, Faculty of Economic Sciences, vol. 0(4), pages 32-39.
    21. Mujaheed Shaikh & Afschin Gandjour, 2019. "Pharmaceutical expenditure and gross domestic product: Evidence of simultaneous effects using a two‐step instrumental variables strategy," Health Economics, John Wiley & Sons, Ltd., vol. 28(1), pages 101-122, January.
    22. Ferris, J. Stephen & Voia, Marcel C., 2015. "The effect of federal government size on private economic performance in Canada: 1870–2011," Economic Modelling, Elsevier, vol. 49(C), pages 172-185.

    More about this item

    Keywords

    Agribusiness; Financial Economics;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:agreko:346839. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/aeasaea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.