Dynamic Impact of Government Expenditure and Debt Policy Instruments on Agricultural Growth in Nigeria

Alexander Ochalibe, Miriam Apeverga, Ejiofor Omeje

OAI: oai:igi-global.com:285571 • DOI: 10.4018/JTA.285571

This research examined the impact of government expenditure and debt policy instruments on agricultural growth in Nigeria for the period 1980-2018. Findings revealed that, for every billion rise in aggregate government expenditure, agricultural growth significantly increased by 1.66%. Additionally, per capital income and inflation were significant determinants of agricultural growth. However, the response of agricultural growth to increased debt was inelastic with a coefficient of -0.3152. Thus, macroeconomic policy instruments dynamics impacted agricultural growth. It recommended increased government expenditure to agricultural sector, education, investing in human capital development through budgetary allocations and intervention funds for increased growth while policy makers should desist from increasing the debt profile as it gave less than proportionate effect on agricultural growth with negative consequences on the Nigerian economy.

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