Public sector expenditure in agriculture and economic growth in Nigeria: An empirical investigation

Nexus of public spending and gross domestic products (GDP) growth in the agricultural sector: Evidence from Nigerian and Malaysian agricultural sector (1976–2016)

“…The implication of this finding is that increase in the funding of public spending to agriculture would have a positive impact on economic growth and welfare. This finding is corroborated by the findings of Tomsik, Smutka, Lubanda, and Rohn, (), Connolly and Li, (), and Tijani, Oluwasola, and Baruwa, () that effectual agricultural policy financing in developing countries must be a top priority and a well‐organized government instruments must be put in place to drive agricultural growth.…”

“…Evidence on Figure has shown the functions ascribed to the government components, which thus, reveal diverse economic strategies and degrees of INTEV, as well as their transparency approaches to successfully fight corruption. While Malaysia is considered as the better manager in terms of components of growth than Nigeria, this finding has been confirmed by the study of Tijani, Oluwasola, and Baruwa () that Economic processes and management in Asian countries particularly in Malaysia is better than in Sub‐Saharan Africa. Regarding the size of the government budget, Malaysia government has managed to keep a relatively modest size of total public spending, which is about 30% of GDP compared to Nigeria below 10%.…”

“…Evidence abounds that agriculture is the largest sector and employer of labor in many developing countries (Agénor & Moreno‐Dodson, ; Anyanwu, Andrew, Erhijakpor, & Obi, ; Calderón, Easterly, & Servén, ; Tijani, Oluwasola, & Baruwa, ). Analysis from Figure indicated that in Nigeria, there is an increased of annual growth rate of 3.2% between 1976 and 1980, while population growth rate witnessed 3.2% in the same period (Figure ).…”

“…Over the years, sustainable budget supplies has been a debatable issue in economic growth. Connolly and Li () and Chauke et al () have argued that the idea of budget is connected with sustainable development because the exposure of sustainability connected ideas is also in the purview of government expenditure (Tijani, Oluwasola, & Baruwa, ). PUEXP is a fiscal instrument that government practices to sustain and grow the economy (Di‐Falco, Feri, Paolo, & Vollenweider, ).…”

“…Moreover, from 1990–1999 to 2000–2010, public funding in agriculture in the agricultural sector declined to 12% and 8%, respectively. Past studies have indicated that in the 1940s through 1970s, Nigeria has a system that fed her citizens and was able to export agricultural commodities surpluses to neighboring countries and beyond (Tijani, Oluwasola, & Baruwa, ). At these periods, public funding in agriculture was very high (about 45% of the total annual budget goes into agricultural development); and Nigeria food import records was 7.7% of ratio of food import to total import, thus confirming that food demand was being met by local production of food.…”