GOVERNMENT EXPENDITURE ON THE AGRICULTURAL SECTOR AND ECONOMIC GROWTH IN NIGERIA
Jimmy, Vincent Gambo &Guluwa, Shadrach Ezekiel
Department of Economiccs
Plateau State University Bokkos, NigeriaEmail: vincentgambo@gmail.com
ABSTRACT
This paper looked at Government Expenditure on the agricultural sector and economic growth in Nigeria. To achieve this, time series data on Real Gross Domestic Product, GCEXP(Government Capital Expenditure on Agriculture) and GREXP (Government Recurrent Expenditure on Agriculture) in the Nigerian economy from 1980 to 2019 was gotten. The Auto Regressive Distributed Lag (ARDL) method was used to analyze the data. The study discovered that government expenditure on the agricultural sector has a significant impact on economic growth in Nigeria. The study recommends that Government should increase its level of expenditure to the agricultural sector, thereby providing more funding in the sector to raise its productivity and increase its contribution to economic growth in Nigeria. Another recommendation is that the Central Bank of Nigeria should come out with stable policy guideline to enable the commercial banks disburse loans to farmers at a very lower interest rate, in order to help them expand their production capacity.
Key words: Economic Growth, Gross Domestic Product, Government Expenditure
