IDEAS home Printed from https://ideas.repec.org/p/ags/miffrp/265415.html

Macroeconomic Factor Influence on Agricultural Program Sustainability in Kaduna State, Nigeria

Author

Listed:
  • Hatzenbuehler, Patrick L.
  • Mavrotas, George

Abstract

In this paper, we measure the degree to which a change in key macroeconomic variables, such as the global oil price, influences the ability of state Ministries of Agriculture in Nigeria to sustain agricultural program funding. More precisely, we estimate and compare the degree to which Nigerian federal and Kaduna state (hereafter Kaduna) government revenues co-move with the global oil price, assess the degree to which the Kaduna government has historically relied on federal allocations to fund its activities, and evaluate the share of the Kaduna Ministry of Agriculture and Forestry (KDMAF) budget that is provided by donors in order to measure how much the KDMAF budgetary condition can change due to adjustments in the global oil price or reductions in donor funds.

Suggested Citation

  • Hatzenbuehler, Patrick L. & Mavrotas, George, "undated". "Macroeconomic Factor Influence on Agricultural Program Sustainability in Kaduna State, Nigeria," Feed the Future Innovation Lab for Food Security Policy Research Papers 265415, Michigan State University, Department of Agricultural, Food, and Resource Economics, Feed the Future Innovation Lab for Food Security (FSP).
  • Handle: RePEc:ags:miffrp:265415
    DOI: 10.22004/ag.econ.265415
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/265415/files/FSp%20Research%20Paper%2086.pdf
    Download Restriction: no

    File URL: https://ageconsearch.umn.edu/record/265415/files/FSp%20Research%20Paper%2086.pdf?subformat=pdfa
    Download Restriction: no

    File URL: https://libkey.io/10.22004/ag.econ.265415?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Takeshima, Hiroyuki & Edeh, Hyacinth & Lawal, Akeem & Isiaka, Moshud, 2014. "Tractor owner-operators in Nigeria: Insights from a small survey in Kaduna and Nasarawa states," IFPRI discussion papers 1355, International Food Policy Research Institute (IFPRI).
    2. Collier, Paul & Hoeffler, Anke, 2009. "Testing the neocon agenda: Democracy in resource-rich societies," European Economic Review, Elsevier, vol. 53(3), pages 293-308, April.
    3. Gang, Ira N. & Ali Khan, Haider, 1990. "Foreign aid, taxes, and public investment," Journal of Development Economics, Elsevier, vol. 34(1-2), pages 355-369, November.
    4. Brzeska, Joanna & Fan, Shenggen & Halsema, Alex & Keyzer, Michiel, 2013. "From subsistence to profit: Transforming smallholder farms," Food policy reports 26, International Food Policy Research Institute (IFPRI).
    5. Singh, Inderjit & Squire, Lyn & Strauss, John, 1986. "A Survey of Agricultural Household Models: Recent Findings and Policy Implications," The World Bank Economic Review, World Bank, vol. 1(1), pages 149-179, September.
    6. Adeleke Salami, 2011. "Taxation, Revenue Allocation and Fiscal Federalism in Nigeria: Issues, Challenges and Policy Options," Economic Annals, Faculty of Economics and Business, University of Belgrade, vol. 56(189), pages 27-50, April – J.
    7. Mr. Tetsuya Konuki & Mr. Mauricio Villafuerte, 2016. "Cyclical Behavior of Fiscal Policy among Sub-Saharan African Countries," IMF Departmental Papers / Policy Papers 2016/009, International Monetary Fund.
    8. Christian Ebeke & Helene Ehrhart, 2012. "Tax Revenue Instability in Sub-Saharan Africa: Consequences and Remedies," Journal of African Economies, Centre for the Study of African Economies, vol. 21(1), pages 1-27, January.
    9. Padamja Khandelwal & Mr. Ken Miyajima & Mr. Andre O Santos, 2016. "The Impact of Oil Prices on the Banking System in the GCC," IMF Working Papers 2016/161, International Monetary Fund.
    10. Hélène Ehrhart & Samuel Guérineau, 2012. "Commodity price volatility and Tax revenues: Evidence from developing countries," CERDI Working papers halshs-00658210, HAL.
    11. Olofinbiyi, Tolulope & Mogues, Tewodaj, 2016. "Synopsis: Who influences government spending in agriculture? The roles of public actors in subnational funding allocation in Nigeria," NSSP policy notes 37, International Food Policy Research Institute (IFPRI).
    12. Olofinbiyi, Tolulope & Mogues, Tewodaj, 2016. "Who influences government spending in agriculture? The roles of public actors in subnational funding allocation in Nigeria," NSSP working papers 36, International Food Policy Research Institute (IFPRI).
    13. Gramlich, Edward M, 1969. "State and Local Governments and Their Budget Constraint," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 10(2), pages 163-182, June.
    14. Talvi, Ernesto & Vegh, Carlos A., 2005. "Tax base variability and procyclical fiscal policy in developing countries," Journal of Development Economics, Elsevier, vol. 78(1), pages 156-190, October.
    15. Kirsten, Johann F. & van Zyl, Johan, 1998. "Defining Small-Scale Farmers In The South African Context," Agrekon, Agricultural Economics Association of South Africa (AEASA), vol. 37(4), pages 1-12, December.
    16. Bazoumana Ouattara, 2006. "Aid, debt and fiscal policies in Senegal," Journal of International Development, John Wiley & Sons, Ltd., vol. 18(8), pages 1105-1122.
    17. Tewodaj Mogues, 2015. "Political Economy Determinants of Public Spending Allocations: A Review of Theories, and Implications for Agricultural Public Investment," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 27(3), pages 452-473, July.
    18. Frankel, Jeffrey A., 2011. "How Can Commodity Exporters Make Fiscal and Monetary Policy Less Procyclical?," Scholarly Articles 4735392, Harvard Kennedy School of Government.
    19. Mogues, Tewodaj & Olofinbiyi, Tolulope, 2016. "Synopsis: Institutions and public agricultural investments: A qualitative study of state and local government spending in Nigeria," NSSP policy notes 38, International Food Policy Research Institute (IFPRI).
    20. Kym Anderson & Gordon Rausser & Johan Swinnen, 2013. "Political Economy of Public Policies: Insights from Distortions to Agricultural and Food Markets," Journal of Economic Literature, American Economic Association, vol. 51(2), pages 423-477, June.
    21. Richard M. Auty, 1997. "Natural Resource Endowment, The State And Development Strategy," Journal of International Development, John Wiley & Sons, Ltd., vol. 9(4), pages 651-663.
    22. Dillon, Brian & Barrett, Christopher B., 2017. "Agricultural factor markets in Sub-Saharan Africa: An updated view with formal tests for market failure," Food Policy, Elsevier, vol. 67(C), pages 64-77.
    23. Alain Janvry & Ravi Kanbur (ed.), 2006. "Poverty, Inequality and Development," Economic Studies in Inequality, Social Exclusion, and Well-Being, Springer, number 978-0-387-29748-4, January.
    24. Elva Bova & Paulo Medas & Tigran Poghosyan, 2018. "Macroeconomic Stability in Resource-rich Countries: The Role of Fiscal Policy," Journal of Banking and Financial Economics, University of Warsaw, Faculty of Management, vol. 1(9), pages 103-122, May.
    25. George Mavrotas, 2002. "Foreign aid and fiscal response: Does aid disaggregation matter?," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 138(3), pages 534-559, September.
    26. Samuel GUERINEAU & Hélène EHRHART, 2011. "Commodity price volatility and Tax revenues: Evidence from developing countries," Working Papers 201131, CERDI.
    27. Gardner, Bruce L, 1992. "Changing Economic Perspectives on the Farm Problem," Journal of Economic Literature, American Economic Association, vol. 30(1), pages 62-101, March.
    28. Brooks, Jonathan & Filipski, Mateusz & Jonasson, Erik & Taylor, J. Edward, "undated". "Modelling The Distributional Impacts Of Agricultural Policies In Developing Countries: The Development Policy Evaluation Model (Devpem)," 84th Annual Conference, March 29-31, 2010, Edinburgh, Scotland 91961, Agricultural Economics Society.
    29. Fielding, David, 1997. "Modelling the Determinants of Government Expenditure in Sub-Saharan Africa," Journal of African Economies, Centre for the Study of African Economies, vol. 6(3), pages 377-390, October.
    30. Keyra Primus, 2016. "Fiscal Rules for Resource Windfall Allocation: The Case of Trinidad and Tobago," IMF Working Papers 2016/188, International Monetary Fund.
    31. Yujiro Hayami, 1970. "On the Use of the Cobb-Douglas Production Function on the Cross-Country Analysis of Agricultural Production," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 52(2), pages 327-329.
    32. Deaton,Angus & Muellbauer,John, 1980. "Economics and Consumer Behavior," Cambridge Books, Cambridge University Press, number 9780521296762, November.
    33. Mogues, Tewodaj & Olofinbiyi, Tolulope, 2016. "Institutions and public agricultural investments: A qualitative study of state and local government spending in Nigeria," NSSP working papers 37, International Food Policy Research Institute (IFPRI).
    34. Halvor Mehlum & Karl Moene & Ragnar Torvik, 2006. "Institutions and the Resource Curse," Springer Books, in: Roger D. Congleton & Kai A. Konrad & Arye L. Hillman (ed.), 40 Years of Research on Rent Seeking 2, pages 245-264, Springer.
    35. Heller, Peter S, 1975. "A Model of Public Fiscal Behavior in Developing Countries: Aid, Investment, and Taxation," American Economic Review, American Economic Association, vol. 65(3), pages 429-445, June.
    36. Khan, Haider Ali & Hoshino, Eiichi, 1992. "Impact of foreign aid on the fiscal behavior of LDC governments," World Development, Elsevier, vol. 20(10), pages 1481-1488, October.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. is not listed on IDEAS
    2. Mavrotas, George & Mogues, Tewodaj & Oyeyemi, Motunrayo & Smart, Jenny & Xiong, Zhe, 2018. "Agricultural public expenditures, sector performance, and welfare in Nigeria: A state-level analysis," NSSP working papers 60, International Food Policy Research Institute (IFPRI).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Mavrotas, George & Mogues, Tewodaj & Oyeyemi, Motunrayo & Smart, Jenny & Xiong, Zhe, 2018. "Agricultural public expenditures, sector performance, and welfare in Nigeria: A state-level analysis," NSSP working papers 60, International Food Policy Research Institute (IFPRI).
    2. Feeny, Simon, 2007. "Foreign Aid and Fiscal Governance in Melanesia," World Development, Elsevier, vol. 35(3), pages 439-453, March.
    3. Feeny, Simon & McGillivray, Mark, 2010. "Aid and public sector fiscal behaviour in failing states," Economic Modelling, Elsevier, vol. 27(5), pages 1006-1016, September.
    4. George Mavrotas & Bazoumana Ouattara, 2003. "The Composition of Aid and the Fiscal Sector in an Aid-Recipient Economy: A Model," WIDER Working Paper Series DP2003-11, World Institute for Development Economic Research (UNU-WIDER).
    5. repec:bla:rdevec:v:13:y:2009:i:s1:p:526-542 is not listed on IDEAS
    6. repec:oup:jafrec:v:32:y:2022:i:1:p:26-51. is not listed on IDEAS
    7. Kaznacheev, Peter, 2013. "Resource Rents and Economic Growth: Economic and institutional development in countries with a high share of income from the sale of natural resources. Analysis and recommendations based on international experience," EconStor Research Reports 121950, ZBW - Leibniz Information Centre for Economics.
    8. Farooq, Imran & Mavrotas, George & Cassimon, Danny, 2025. "Aid heterogeneity and fiscal response: the case of Pakistan," IOB Working Papers 2025.13, Universiteit Antwerpen, Institute of Development Policy (IOB).
    9. Farooq, Imran & Mavrotas, George & Cassimon, Danny, 2026. "Fiscal response in the presence of aid heterogeneity under political regime change: new evidence from Pakistan," IOB Working Papers 2026.01, Universiteit Antwerpen, Institute of Development Policy (IOB).
    10. Leanora Alecia Brown & Jorge Martinez-Vazquez, 2015. "International Debt Forgiveness: Who Gets Picked and Its Effect On The Tax Effort Of Developing Countries," International Center for Public Policy Working Paper Series, at AYSPS, GSU paper1504, International Center for Public Policy, Andrew Young School of Policy Studies, Georgia State University.
    11. Susana Franco‐Rodriguez, 2000. "Recent developments in fiscal response with an application to Costa Rica," Journal of International Development, John Wiley & Sons, Ltd., vol. 12(3), pages 429-441, April.
    12. Ouattara, B., 2006. "Foreign aid and government fiscal behaviour in developing countries: Panel data evidence," Economic Modelling, Elsevier, vol. 23(3), pages 506-514, May.
    13. Kassouri, Yacouba & Altıntaş, Halil, 2021. "Cyclical drivers of fiscal policy in sub-Saharan Africa: New insights from the time-varying heterogeneity approach," Economic Analysis and Policy, Elsevier, vol. 70(C), pages 51-67.
    14. Wee Chian Koh, 2017. "Fiscal Policy in Oil-exporting Countries: The Roles of Oil Funds and Institutional Quality," Review of Development Economics, Wiley Blackwell, vol. 21(3), pages 567-590, August.
    15. Christian von Haldenwang & Maksym Ivanyna, 2017. "Does the political resource curse affect public finance? The vulnerability of tax revenue in resource-rich countries," WIDER Working Paper Series 007, World Institute for Development Economic Research (UNU-WIDER).
    16. Loujaina Abdelwahed, 2021. "The fiscal management of permanent and temporary foreign aid: Evidence from sub‐Saharan Africa," Journal of International Development, John Wiley & Sons, Ltd., vol. 33(4), pages 685-716, May.
    17. Agénor, Pierre-Richard & Bayraktar, Nihal & El Aynaoui, Karim, 2008. "Roads out of poverty? Assessing the links between aid, public investment, growth, and poverty reduction," Journal of Development Economics, Elsevier, vol. 86(2), pages 277-295, June.
    18. Loujaina Abdelwahed, 2023. "Fiscal Responses to Foreign Aid: Does the Permanence of Aid Matter?," Journal of African Economies, Centre for the Study of African Economies, vol. 32(1), pages 26-51.
    19. George Mavrotas, 2003. "Which Types of Aid Have the Most Impact?," WIDER Working Paper Series DP2003-85, World Institute for Development Economic Research (UNU-WIDER).
    20. Shonchoy, Abu S., 2010. "Determinants of government consumption expenditure in developing countries : a panel data analysis," IDE Discussion Papers 266, Institute of Developing Economies, Japan External Trade Organization(JETRO).
    21. Christian von Haldenwang & Maksym Ivanyna, 2017. "Does the political resource curse affect public finance?: The vulnerability of tax revenue in resource-rich countries," WIDER Working Paper Series wp-2017-7, World Institute for Development Economic Research (UNU-WIDER).
    22. Augustin Fosu, 2010. "The External Debt-Servicing Constraint and Public-Expenditure Composition in Sub-Saharan Africa," African Development Review, African Development Bank, vol. 22(3), pages 378-393.

    More about this item

    Keywords

    ;
    ;
    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:miffrp:265415. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/damsuus.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.