Effect Of Government Expenditure On Agricultural Sector On Agricultural Value-Added Growth Rate In Nigeria

Abstract

This study was carried out to evaluate the impact of government expenditure on the agricultural sector on the agricultural value-added growth rate in Nigeria between 2003 and 2022 using annual time series data sourced from the Central Bank of Nigeria Statistical Bulletin and World Bank Development. Agricultural value-added growth rate was used as the dependent variable, while government expenditure on agriculture was used as the independent variable. Auto Regressive Distributed Lag (ARDL) Model was used to analyze data. The results of the ARDL Model revealed that government expenditure on the agricultural sector had a significant negative relationship with Nigeria's agricultural value-added growth rate. Therefore, the researchers recommended that the government fund or support intending agricultural investors and producers through financial initiatives that would help develop value-added enterprises/businesses.