The Impact Of Government Expenditure On Crop Production In Nigeria (1981-2018)

Abstract:

The study examined the Impact of Government Expenditure on Crop Production in Nigeria (1981-2018). The objectives were to: ascertain the effects of government expenditure (GEXP) on Crop Production in Nigeria and to determine the long relationship between government expenditure and crop production. The study employed time series data in its analysis. Data adopted in the study were generated from the Central Bank of Nigeria annual statistical bulletin 2018. The methodology employed for this study included the use of a model with Total Crop Production as the dependent variable and Government expenditure on agriculture, Exchange rate, Interest rate and Inflation rate as the independent variable. The methodology employed descriptive statistics such as mean, median, mode, standard deviation, Kurtosis, Jarbaque-bera, Skewness so as to examine the statistical properties of the variables. The Unit Root ADF diagnosis test was conducted to examine the stationarity of the variables which were found at first difference and stationary level. The normality test was used to show if the data is normally distributed and the result showed that the data was normally distributed as the P-value of 0.741064 is greater than 5% level of significance when using the Jarbaque-bera test. The autoregressive distributed lag (ARDL) approach to co-integration was used to test for the short run and long run relationship of the variables which revealed that government expenditure on agriculture has positive impact on total crop production while exchange rate has negative effect on total crop production in the short run, however in the long run result using the ARDL bound test showed that there is no long run relationship