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The Nexus Between Agricultural Capital Expenditure And Economic Growth In Nigeria

Author

Listed:
  • Oyerinola, David Sunday

    (Department of Economics)

  • Abayomi, Muftau Adesina

    (Department of Economics)

  • Alabi, Salihu Otubu

    (Department of Economics)

Abstract

This paper investigates the nexus between agricultural capital expenditure and economic growth in Nigeria, using time series data for the period 1980 to 2014. The study becomes more relevant in the wake of the need to diversify Nigeria mono-product economy, which is characterized with proceeds majorly from hydrocarbons. The study also develops an asymptotic theory for inference based on the Fully-modified least squares co-integrating regression (FM-OLS) to determine the impact of agricultural capital expenditure on economic growth in Nigeria. The result shows that the combinations of the explanatory variables significantly explained the behavior of the explained variable and expenditure on agriculture positively and significantly influence economic growth. The study recommended that government should increase budgetary allocations to agricultural sector and collaborate with private investors to resuscitate the sector in order to bounce back as a corollary for economic growth.

Suggested Citation

  • Oyerinola, David Sunday & Abayomi, Muftau Adesina & Alabi, Salihu Otubu, 2017. "The Nexus Between Agricultural Capital Expenditure And Economic Growth In Nigeria," Ilorin Journal of Business and Social Sciences, Faculty of Social Sciences, University of Ilorin, vol. 19(1), pages 43-54.
    • Handle: RePEc:ris:ilojbs:0019
    as

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    References listed on IDEAS

    as
    1. Malcolm Knight & Norman Loayza & Delano Villanueva, 1996. "The Peace Dividend: Military Spending Cuts and Economic Growth," IMF Staff Papers, Palgrave Macmillan, vol. 43(1), pages 1-37, March.
    2. Levine, Ross & Renelt, David, 1992. "A Sensitivity Analysis of Cross-Country Growth Regressions," American Economic Review, American Economic Association, vol. 82(4), pages 942-963, September.
    3. Aigbokhan, B.E., 2000. "Poverty, Growth and Inequality in Nigeria: A Case Study," Papers 102, African Economic Research Consortium.
    4. Aladejare, Samson Adeniyi, 2013. "Government spending and economic growth: evidence from Nigeria," MPRA Paper 43916, University Library of Munich, Germany.
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