Impacts of macro-economic and goverment policies on Nigeria's agricultural sector

Abstract

This study examined the impacts of macro-economic and government expenditure policies on Nigeria's agriculture sector for the period, 1983-1996. Time-series data were used for the study. The period of review constituted the sample size. Data were collected on aggregate agricultural output, past real government expenditures on agriculture, economically active population in agriculture, area under agricultural activities, labour productivity in agriculture, and weather indices. Data were analyzed by applying the ordinary least squares multiple regression analysis technique to an agricultural output function. The result of the analysis showed that the intercept term, the coefficients of capital, rainfall and trend variable are statistically significant at 1% level, while the coefficient for area of land is statistically significant at 5% level. Aggregate agricultural output was found to be directly related to labour, capital and weather index and inversely related to area of land. The estimated policy impact elasticity indicates that public expenditures on agriculture during the period 1983-1996 have impacted positively on agricultural production in the country.

Keywords: Macroeconomic, government policies, agricultural sector

Journal of Agriculture, Forestry and the Social Sciences Vol 3(1) 2005: 97-103