The Effects of Public Expenditure on Agricultural Production Output in Nigeria

The study examined the effects of government spending on the agricultural sector in Nigeria. The objectives were to: ascertain the effects of government expenditure (GEA), deposit money banks loan (DBA) and gross capital formation (GCF) on agricultural production output in Nigeria. The quasi-experimental research design was employed. 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 2013 and National Bureau of Statistics bulletin 2013. The ordinary least square of multiple regression, the Joanson co integration techniques, and the error correction model were used for the analysis. The E-view 7.1 statistical software was employed for the study. The results showed that the coefficient of determination is 0.9468 and the coefficient of the ECM appeared with negative sign and statistically significant. Durbin/Watson value is 1.954 and the f-statistics of 33.84 is significant at 5% level. In specific terms. The lag two and three forms of the explanatory variables GEA were positive and statistically significant. The DBA was positive but statically not significant at 5% level. The coefficient of GCF for the lag two and three periods were rightly signed and statistically significant at 5% level. Bases on the above findings, the study recommends for an increase funding of the agricultural sector in Nigeria.