GOVERNMENT EXPENDITURE AND AGRICULTURAL PRODUCTION IN NIGERIA (1970 – 2010)
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- NGN GOVERNMENT EXPENDITURE AND AGRICULTURAL PRODUCTION IN NIGERIA (1970 – 2010)
ABSTRACT
This research work critically focused on the roles of government expenditure in the agricultural production in Nigeria for the period 1970 to 2010. Data on relevant variables were collected from the statistics Bulletin of the Central Bank of Nigeria. A functional relationship between Agricultural output and other explanatory variables, of which government expenditure is one, was specified and estimated using the OLS method and multiple regression analysis. It was found that adjusted R2 for the relationship was 85% and also that government expenditure has played a positive role in the development of the agricultural sector. Other major findings made were that the rate of inflation was very low throughout the period and did not cause much impact with regards to low productivity. The amount of rainfall during the period was very low and does not have any significant effect on agricultural output. Another observation was that the rising prices of agricultural products brought about increase in the performance of the sector, as more people were attracted to it. Again, low interest rate was an encouragement for investors to invest more on agricultural product.
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