The Effect of Government Expenditure on Yam Yield in Nigeria
Journal of Economics and Trade, Volume 8, Issue 2,
Page 19-33
DOI:
10.56557/jet/2023/v8i28325
Abstract
The broad objective of this study is the analysis of the long and short run effect of government expenditure on yam yield in Nigeria. The study applied descriptive statistics and autoregressive distributed lag (ARDL) econometric approach to the secondary data collected from Central Bank of Nigeria Statistical Bulletin and FAOSTAT. The descriptive analysis shows that yam output was increasing in Nigeria with decreasing trend in yield. The result of the econometric analysis indicates that agricultural government expenditure does not have significant long and short-run effects on yam production and yield. This is because the real per capita agricultural government expenditure is small. The study concludes that although, agricultural government expenditure does not have significant long and short-run effects on yam production and yield, it is positively correlated with agricultural inputs used in yam production. Based on the findings from the study, various recommendations were made, which include the need to increase the share of agricultural public expenditure in total government expenditure in Nigeria, which stood at 2%, can be increased to 4% which is the average for Sub-Sahara Africa, while targeting 10% recommended in the Maputo Declaration.
- Yam yield
- government expenditure
- agricultural mechanization
- yam production
How to Cite
References
Toluwase SOW, Sekumade AB. Resource use efficiency of yam production in Ekiti State, Nigeria. Advances in Social Sciences Research Journal. 2017;4(2): 20-34.
Mignouna D, Abdoulaye B, Akinola TA, Alene A. From yam production and Postharvest Constraints to Opportunities; 2015.
Awoniyi OA, Omonona BT. Production efficiency in yam based enterprises in Ekiti State, Nigeria. Journal of Central European Agriculture. 2007;7(4):627-636.
Babaleye T. West Africa; Improving yam production technology. ANB- BIA supplement Issue/ Edition Number. 2003;463.
CGIAR. Report of the inter center review of root and tuber crops research. Consultative Group on International Agricultural Research Technical Advisory Committee. FAO, Italy, Rome; 1997.
Available:https://cgspace.cgiar.org/handle/10947/1205
Olomola A. Evaluation the impact of agricultural subsidy scheme on farmers’ productivity, food security and nutrition outcomes in Northcentral and Southwest regions. Working Paper BMGF-001. AERC, Nairobi, Kenya; 2020.
Olomola A, Mogues T, Olofinbiyi T, Nwoko C, Udoh E, Alabi Reuben Adeolu, Onu J, Woldeyohannes S. Agriculture public expenditure review at the federal and subnational levels in Nigeria (2008-12). The World Bank, Washington, D.C, USA; 2015.
Akande LO. Empowerment of the Rural People through Agricultural Mechanization. Presented at the 2006 School Conference, School of Science, Osun State College of Education, Ila-Orangun, 1st June; 2006.
Alabi RA, Oshobugie Ojor Adams. The Impact of E-Wallet Fertilizer Subsidy Scheme and its Implication on Food Security in Nigeria. Research Paper 390. African Economic Research Consortium, Nairobi; 2020. Available: https://aercafrica.org/wp-content/uploads/2020/01/Research-Paper-390.pdf
WDI. World Bank World Development Indicators Database; 2019. Available: http://data.worldbank.org/ datacatalog/world-development-indicators
Ozor N, Urama K. The role of technology in ensuring adequate food security in Africa. Development. 2013;56(2): 266-273.
Olayide SO, Heady EO. Introduction to agricultural production economics. Ibadan University Press, Ibadan, Nigeria; 1982.
Heady EO, Dillion JL. Agricultural production function. Iowa State University Press, Iowa, USA; 1961.
Akinwumi JA. Economics of maize production in Oyo division. Western Nigeria. M.Sc Thesis, University of Ibadan; 1970.
Olayide SO, Ogunfowora O. The economics of cowpeas response to fertilizer application. Bulletin of Rural Economics and Sociology. 1969;4(1):7-29.
Alabi, Reuben Adeolu, Godwin Abu. Impact of public expenditure on agricultural productivity in Nigeria. Research Paper 526. African Economic Research Consortium (AERC), Nairobi, Kenya; 2023.
Debertin D. ‘The Cobb-Douglas production function’. Agricultural Production Economics. University of Kentucky, United States; 2012.
Udoh E. An Examination of Public Expenditure, Private Investment and Agricultural Sector Growth in Nigeria: Bounds Testing Approach. International Journal of Business and Social Science. 2011;2(13):285-291.
Pesaran MH, Shin Y. An autoregressive distributed lag modelling approach cointegration analysis, In: Storm, S. (ed), Econometrics and Economic Theory in the Century: The Cambridge University Press, U.K; 1999.
Pesaran MH, Shin Y, Smith RJ. Bound Testing Approaches to the Analysis of Level Relationship. Journal of Applied Economics. 2001;16:289-326.
Harris H, Sollis R. Applied time series modelling and forecasting. Wiley, West Sussex, U.K; 2003.
Essien JM, Mepbari N, Nwikiabeh LBM, Piabari N. Impact of government spending on small and medium scale businesses in Nigeria. Equatorial Journal of Marketing and Insurance Policy. 2016; 1(2):41- 56.
FAO. Food and Agriculture Organization (FAO) of the United Nations, Rome, Italy; 2022. Available:http://www.fao.org/faostat/en/#data/QC
Adetiloye KA. Agricultural financing in Nigeria: An assessment of the Agricultural Credit Guarantee Scheme Fund (ACGSF) for food security in Nigeria. Journal of Economics. 2012;3(1):39-48
FAOSTAT. Crops and Livestock Products; 2023.
Available:https://www.fao.org/faostat/en/#data/QCL
Barrett CB. Does food aid stabilize food availability? Economic Development and Cultural Change. 2001;49(2):335- 349.
Kripfganz S, Schneider DC. ARDL: Estimating autoregressive distributed lag and equilibrium correction models. Proceedings of the 2018 London Stata Conference. London, U.K; 2018.
Mogues T, Morris M, Freinkman L, Adubi A, Ehui S. Agricultural public spending in Nigeria” in T. Mogues and S. Benin (eds.) Public Expenditures for Agricultural and Rural Development in Africa, Routledge/ Taylor & Francis, London, UK; 2012a.
Mogues T, Yu B, Fan S, McBride L. The impacts of public investment in and for agriculture, Synthesis of the existing evidence, ESA Working Paper No. 2012b;12-07.
Alabi, Reuben Adeolu, Adams, Oshobugie Ojor, Godwin Abu. Does an inorganic fertilizer subsidy promote the use of organic fertilizer in Nigeria? AGRODEP Working Paper 0036. International Food Policy Research Institute, Washington D.C, USA; 2016.
NBS. LSMS integrated surveys on agriculture. Nigeria household survey –panel wave 4(2018-2019). Nigeria Bureau of Statistics, Abuja, Nigeria; 2021.
Benin S. Impact of Ghana’s agricultural mechanization services center programme. Agricultural Economics. 2015;46(1):103-117.
Philip D, Nkonya E, Pender J, Oni OA. Constraints to increasing agricultural productivity in Nigeria: A Review. NSSP Background Paper 6. IFPRI, Washington, D. C; 2019.
GAP Report. Global Agricultural Productivity; 2019.
Available:https://globalagriculturalproductivity.org/wp-content/uploads/2019/01/2019-GAP-Report-FINAL.pdf
FAO. Guidelines for the measurement of productivity and efficiency in agriculture. Food and Agriculture Organization Economic and Social Development Paper no. 16. Food and Agriculture Organization Publication: Italy, Rome; 2018.
Goyal A, Nash J. Reaping Richer Returns: Public Spending Priorities for African Agriculture Productivity Growth. Africa Development Forum series. World Bank, Washington, DC, USA; 2017.
Reuben A. Alabi, Oshobugie Ojor Adams. The Impact of E-Wallet Fertilizer Subsidy Scheme and its Implication on Food Security in Nigeria. Research Paper 390. African Economic Research Consortium, Nairobi; 2020. Available: https://aercafrica.org/wp-content/uploads/2020/01/Research-Paper-390.pdf
Alabi RA, Bakare A, Alabi TV. Financial Inclusion, Innovation and Agricultural Development in Nigeria. In Tobias Knedlik (eds). African Development Perspectives Yearbook. Institute of World Economics and International Management, University of Bremen, Bremen, Germany. 2021; 223-272.
-
Abstract View: 17 times
PDF Download: 3 times