GOVERNVERMENT EXPENDITURE ON AGRICULTURE AND AGRICULTURAL OUPUT IN NIGERIA (1975-2010)

¹Itodo Ahmed Idoko; ²Apeh Sunday and Adeshina Sheri

^1&2Department of Economics

University of Mkar, Mkar, Benue State

ABSTRACT

The study examined the impact of Government Expenditure on Agricuture on Agricultural Output in Nigeria (1975-2010). Cob-douglas Production Function, which states that potential output is primarily determined by measurable inputs, was used as the theoretical framework. The methodology employed was the linearized Cob-Douglas function. The variables of the model include Government Expenditure on Agricultural sector, Commercial banks loans and advances to the Agricultural sector, Foreign direct investment on the Agricultural sector, Annual rainfall and Agricultural credit quarantee scheme fund. Odinary Least Squares econometric tecnique was used to estimate a multiple regression of Agricultural output against its above listed explanatory variables. The result of the estimated model revealed a positive both insignifacant relationship between Government expenditure to the agriculural sector and Agricultural output within the scope of this research. Based on this finding, the researcher make relevant recommendations that would help improve the statusquo.