ABSTRACT
This paper examined empirically the relationship between agricultural output and federal government recurrent expenditure on agriculture from 1981 to 2010. The data were obtained from the Central Bank of Nigeria Statistical Bulletin of 2010, and were subjected to analysis using regression, unit root test and co-integration test of E-view 7 statistical software. The results show that there is a positive relationship between agricultural output and federal government recurrent expenditure on agriculture as well as a long-run relationship. The study recommends amongst others that the Federal Government should as a matter of urgency increase the recurrent expenditure on agriculture as this is capable of increasing agricultural output which is likely to fill the food importation gap already being experienced in the country. |
