Impact of Government Expenditure on Agricultural Growth in Nigeria: An empirical evidence from Kogi State.

Abstract

This study aimed at examining the impact of state government expenditure on agricultural growth in Kogi state from 2000-2018. The study was anchored on Keynesian theory of government expenditure. Correlational research design was adopted using secondary data from Kogi State Ministry of Budget and Planning and KOSADP. The data collected were subjected to unit root test
using Augmented Dickey Fuller (ADF) test to ensure the stationarity of the data. Having established that the data were stationary at first difference, it was further subjected to Johansen Co-integration test to check for long run relationship among the variables. Since the study could not establish long run relationship, it was finally subjected to Vector Autoregressive (VAR) Model. The result from VAR Model revealed that there is no significant relationship between government capital expenditure and agricultural growth in Kogi State. Similarly, the study also discovered that there is no significant relationship between recurrent expenditure and agricultural growth in Kogi State. In line with the findings, the study recommended among other things the need for the Kogi State government to take agricultural funding very important by increasing agricultural expenditure to 10% Maputo declaration benchmark and also ensuring timely release of fund in procurement of agro-equipment to crop farmers as agricultural activities is seasonal and time bound in Nigeria.