GOVERNMENT EXPENDITURE ON AGRICULTURE AND AGRICULTURAL PERFORMANCE IN DEVELOPING COUNTRIES: AN EMPIRICAL EVALUTION

D. Diakosavvas

Journal of Agricultural Economics, 1990, vol. 41, issue 3, 381-389

Abstract: In recent years, new prominence has been assigned to the effects of non‐price measures on the performance of the agricultural sector in developing countries. Nevertheless, the contribution of government expenditure to agricultural output growth has not received its due attention. This paper endeavours to estimate the impact of government expenditure (on agriculture) on the performance of the agricultural sector. An inter‐country production function is estimated for a sample of thirty‐five developing countries, pooling cross‐section and time‐series data over the 1974‐84 period. The influence of instability in government expenditure on agriculture and on agricultural growth is also assessed. The results show that government expenditure policies are of vital importance in influencing the performance of the agricultural sector. It was also found that instability in government expenditure is a deterrent to agricultural output growth.

Date: 1990
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Persistent link: https://EconPapers.repec.org/RePEc:bla:jageco:v:41:y:1990:i:3:p:381-389

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