Government Expenditure on Agriculture and Agricultural output in Cross River State.pdf

This study examined the impact of government expenditure on agriculture and agricultural output in Cross River State from 1999-2018 using data from Cross River State Annual Statistical Report 2019. The study employed a thorough pre-estimation diagnostic test and econometric technique under the framework of Ordinary Least Squares (OLS) to estimate the model. Findings as analyzed in the empirical result of aggregate model revealed that log of government expenditure on agriculture LOG (GEA) has a positive and insignificant impact on agricultural output indicating that log of government expenditure on agriculture LOG (GEA) is a major factor that reduces agricultural output in cross river state. Inflation (INF) has a positive and significant impact on agricultural output in Cross River State indicating that inflation (INF) is a major determinant of agricultural output in Nigeria. Interest rate (INTR) has a negative and insignificant impact on agricultural output indicating that interest rate (INTR) is not a determinant of agricultural output in Cross River State. The study recommends that government should increase their spending on agricultural sector to boast productivity, create employment and induced agricultural output in cross river state. Keyword: Government Expenditure, Inflation, Interest rate, Agricultural Output, Productivity