Public Agricultural Spending Research Articles

Public Agricultural Spending on Cowpea and Soybean Yields in Cameroon: Implications for Productivity and Sustainable Development

This study examines the impact of public agricultural spending on cowpea and soybean yields in Cameroon from 2000 to 2024, using time series data and Ordinary Least Squares (OLS) analysis. The results indicate that public agricultural spending, land use, agricultural labour, and fertilizer use explain 82% and 96% of the variation in soybean and cowpea yields, respectively. Findings reveal a positive and significant relationship between agricultural labour and yields for both crops, highlighting the importance of labour-intensive farming practices. Additionally, increased public agricultural spending significantly enhances cowpea yields, emphasizing the critical role of government investment in agriculture. Conversely, a 30% decrease in public spending would likely reduce yields due to diminished access to essential inputs and services. The study underscores the need for sustained public support and efficient labour use to boost agricultural productivity in Cameroon. Copyright© 2024 The Author(s). This article is distributed under the terms of the license CC-BY 4.0., which permits any further distribution in any medium, provided the original work is properly cited.

Measuring the impact of public agricultural spending on food security by applying it to the MENA region (standard study)

Measuring the impact of public agricultural spending on food security by applying it to the MENA region (standard study)

Response of Agriculture Production to Change of Foreign Direct Investment and Public Agriculture Expenditure in South Africa: A Monte Carlo Simulation Analysis

The rationale of this paper was to investigate the response of agriculture production to the simultaneous shock of foreign direct investment and public agricultural spending in South Africa during 1991-2019. Data were collected from secondary sources and analyzed using Monte Carlo simulation. Results revealed that agriculture production is maximized at 1,73% if Foreign direct investment inflows, agricultural credit, and the number of employees increase by 10% while public spending is decreased by 10%. Hence, it is recommended that policymakers should combine FDI inflows in agriculture, and agricultural credit in a complementary manner, with emphasis to attract more extensive farm workers to ensure the sustainability of production in the agriculture sector in South Africa. This paper contributes to enhance agriculture sector by using the best combination of input in agriculture in order to maximize production.

The Impact of Public Agricultural Spending on Foreign Direct Investment Inflows in Agriculture in South Africa: An ARDL Analysis

Since the transformation of South African agriculture post-apartheid, public agricultural spending and foreign direct investment in agriculture were regarded as predominantly essential for the development of agriculture sector. However, many authors still argue whether public agriculture spending should be complemented by foreign direct investment inflows in agriculture or vice versa. Thus, the key focus of this paper is to investigate the impact of public agricultural spending on foreign direct investment inflows in agriculture in South Africa over the period 1991-2019. The Autoregressive distributed lag(ARDL) Bounds test and Granger causality were used to investigate both short run and long-run impact of public agricultural spending on foreign direct investment inflows in agriculture. The results of the long run model show that agriculture production has a positive and significant impact on foreign direct investment. However, public spending in agriculture has a negative and significant influence on the foreign direct investment inflows in agriculture. In addition, Granger causality results show causality flowing from public agriculture spending, net export and inflation to foreign direct investment inflows in agriculture. Hence, it is recommended that policymakers should take practical steps towards total eradication of misallocation and squandering of the available funds and redirected toward bridging infrastructural deficits, land restitution to promote foreign direct investment inflows the development of agriculture.

Does institutional quality affect the impact of public agricultural spending on food security in Sub-Saharan Africa and Asia?

Due to declining or stagnating agricultural productivity and rising food insecurity, African countries agreed to dedicate ten percent of public spending to agriculture under the Maputo and Malabo declarations in 2003 and 2014, respectively. Similarly, Asian countries increased spending on agriculture via input subsidies for crop production, greater mechanisation, and research and development funds. These spending increases are happening in countries with varying levels of institutional quality, and hence, differences in observed outcomes. Using cereal prodution as proxy for the availability dimension of food security, we conduct a comprehensive empirical assessment of the impact of public agricultural spending on food security under heterogeneous institutional quality regimes. We estimate fixed effects models with robust standard errors using an unbalanced panel of 25 countries in Sub-Saharan Africa and Asia over 22 years. The preponderance of evidence suggests that institutional quality plays a significant mediating role on the impact of public agricultural spending on food security. Overall, the magnitude of change in cereal production due to public agricultural spending is larger for countries with higher institutional quality than for those with lower institutional quality. While public investment in agriculture enhances food security, its effectiveness is predicated on improvements in the quality of public institutions. High quality public institutions protect private physical and intellectual property and guide prudent use of public resources.

Can Foreign Direct Investment Complement or Substitute Public Agricultural Spending for the Sustainability of the Agricultural Sector in Nigeria? Empirical Evidence Using Monte Carlo Simulation

The study analyzed the response of agricultural growth to foreign direct investment and public agricultural spending from 1980 to 2018. Data were collected from secondary sources and analyzed using Johansen Co integration, Vector Error correction model and Monte Carlo Simulation. The result showed that foreign direct investment and public agricultural spending increased agricultural production in the long but decreased it in the short run. The study concluded that an increase in foreign direct investment and an increase in public agricultural spending (scenario 3) provided the best alternative for the sustainability of agricultural growth in Nigeria. It was recommended friendly business policies should be made to attract more foreign direct investment into the country and the issues of insecurity and infrastructures should be handled for meaningful and sustainable FDI to be attracted into Nigeria.

Economic Impact of Public Expenditure in The Gambia

The impact of public expenditure on the productive sectors (agriculture, industry, and service) in The Gambia, is analyzed within the framework of a Dynamic Computable General Equilibrium (DCGE) model. The model is applied and calibrated to assess the impact of a 10% increase in public expenditure on economic growth and welfare over five years. The results indicate an increase in GDP and value-added, mainly as a result of growth in the service sector.Also, an expansion of the service sector leads to the migration of jobs to the rural areas, which will consequently enhance rural labour income. A significant finding is that general public expenditure on agriculture may not get the desired result for poverty reduction, specifically in rural areas. As a result, public agricultural spending should be targeted across various agriculture sub-sectors, such as, irrigation, among others. The Government of The Gambia (GoTG) should also prioritize investment in the service sector, given that it has immense potentials in enhancing the livelihoods of Gambians in rural areas.

ELECTRICITY CONSUMPTION, PUBLIC AGRICULTURAL EXPENDITURE AND OUTPUT IN NIGERIA: A TIME SERIES DYNAMIC APPROACH

This study interrogates the effects of electricity consumption and government agricultural spending on agricultural output in Nigeria using data that spanning through from 1981 to 2017. The unit root test was conducted with Phillip Perron (PP) at constant and trend while the dynamic model of autoregressive distributed lags (ARDL) was used in ascertaining the existence of cointegration among the variables in the model. The outcome of the study shows that poor electricity supply has significantly retarded the level of agricultural output in Nigeria while public agricultural spending indicates a weak positive lag effect on agricultural sector performance. These outcomes capture the adverse effect of shortage in electric energy supply and poor government allocation on agricultural production of goods and services. We, therefore, advocate for sector-driven energy policies that will foster the growth and development of the agricultural sector through mechanisation of agricultural system.

From Maputo to Malabo: public agricultural spending and food security in Africa

ABSTRACTAfrica is the world’s biggest battleground in the fight against hunger. African governments and the international development community have increasingly focused on finding ways and means to end hunger and ensure the right and access to food for the continent’s burgeoning population. Public spending on agriculture is one such measure. This study examines the role government spending on agriculture has played in enhancing the state of Africa’s food security over the past 25 years. We examine the existing relationship between the two, whether this relationship varies over time and space, and whether it depends on the amount spent. We explore various aspects of food security and check whether spending on research and development follows the same patterns as the overall public agricultural spending. We find some evidence of significant beneficial effects of public agricultural spending on food security but only for the countries which allocate greater proportions of their budgets to agriculture. Spending on agricultural research and development also shows a positive impact on Africa’s food security. There also exists some evidence supporting the temporal effects of public spending. We consider that the Maputo Declaration commitment to allocate at least 10% of public spending to agriculture pertinent.

Food security and public agricultural spending in Bolivia: Putting money where your mouth is?

This paper explores the reduction of food insecurity in Bolivia, adopting a supply-side approach that analyzes the role of agricultural spending on vulnerability to food insecurity. Vulnerability to food insecurity is captured by a municipal-level composite indicator for all 327 municipalities in 2003, 2006, and 2007. Econometric analysis indicates that levels of public agricultural spending are positively associated with high or very high vulnerability—especially investments in infrastructure and research and extension. The authors interpret this to indicate that agricultural spending allocation is driven by high or very high vulnerability levels, but has small effects on reducing high vulnerability.