THE NEXUS BETWEEN AGRICULTURAL CAPITAL EXPENDITURE AND ECONOMIC GROWTH IN NIGERIA

Oyerinola, David Sunday (), Abayomi, Muftau Adesina () and Alabi, Salihu Otubu ()
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Oyerinola, David Sunday: Department of Economics, Postal: University of Ilorin, Ilorin, Nigeria.,, https://fssunilorinedu.org/ijbss/index.php
Abayomi, Muftau Adesina: Department of Economics, Postal: Federal University of Technology, Akure, Nigeria,, https://fssunilorinedu.org/ijbss/index.php
Alabi, Salihu Otubu: Department of Economics, Postal: Kwara State College of Education, Ilorin.,, https://fssunilorinedu.org/ijbss/index.php

Ilorin Journal of Business and Social Sciences, 2017, vol. 19, issue 1, 43-54

Abstract: This paper investigates the nexus between agricultural capital expenditure and economic growth in Nigeria, using time series data for the period 1980 to 2014. The study becomes more relevant in the wake of the need to diversify Nigeria mono-product economy, which is characterized with proceeds majorly from hydrocarbons. The study also develops an asymptotic theory for inference based on the Fully-modified least squares co-integrating regression (FM-OLS) to determine the impact of agricultural capital expenditure on economic growth in Nigeria. The result shows that the combinations of the explanatory variables significantly explained the behavior of the explained variable and expenditure on agriculture positively and significantly influence economic growth. The study recommended that government should increase budgetary allocations to agricultural sector and collaborate with private investors to resuscitate the sector in order to bounce back as a corollary for economic growth.

Keywords: FM-OLS; agricultural capital; economic growth; government expenditure (search for similar items in EconPapers)
Date: 2017
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Persistent link: https://EconPapers.repec.org/RePEc:ris:ilojbs:0019

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