IMPACT OF GOVERNMENT EXPENDITURE ON AGRICULTURAL PRODUCTIVITY IN NIGERIA

Abstract

The main purpose of this study is to discover the impact of government expenditure on agricultural productivity in Nigerian. The methodology employed in this study was based on the time series data covering from 1985-2018 collected from Central Bank of Nigeria (CBN). The scope of this study spanned from 1985 to 2018, Ordinary least square method of the Keynesian model was used in obtaining the numerical estimates of the coefficients in the model to test the variables most likely to positive impact on economic growth in Nigeria due to Government expenditure. The findings also show that there is a strong relationship between government expenditure and agricultural productivity in Nigerian. From the results obtained, it is clearly seen that adequate funding through provision of credit facilities can significantly increase the productivity and output of the agricultural sector in the economy. Debt financed government expenditure can have hindered growth as it tends to generate inflationary forces in the economy. For government expenditure to exhibit the desired results in the economy, government expenditure needs to be closely monitored.