EFFECT OF STATE GOVERNMENT EXPENDITURE ON CROP PRODUCTION IN KOGI STATE (2000-2018)
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ABSTRACT
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The study assessed the effect of state government expenditure on agricultural growth in Kogi State (2000-2018). The increasing incidence of shortage of agricultural output which is evidenced in the high cost of food items and increase in food poverty has been an issue of concern to the governments at all levels. The Kogi State Agricultural Development Programme (KOSADP) was established and in spite of the effort of the government on yearly spending on the agricultural sector, farmers still do not have access to modern farm equipment. Therefore, the main objective of the study is to find out the effect of government expenditure on crop production in Kogi State. The Keynesian theory of public expenditure was adopted as theoretical framework. To achieve the objective, the study adopted concurrent embedded design. The study used both primary and secondary sources of data. The primary data were collected directly from the respondents (farmers association and staff Ministry of Agriculture and KOSADP) using interview schedule while the secondary data were obtained from Kogi State Ministry of Budget and Planning and KOSADP head office for the period 2000-2018. The secondary data were analysed using Vector Autoregressive (VAR) model and Granger causality test while the primary data were analysed using content analysis to support the findings of the secondary data. The findings of the study revealed that there is positive but insignificant relationship between government capital expenditure and agricultural growth in Kogi State because the P value is greater than 5% level of probability. However, base on the findings, the study recommended among other things that there is need for the government of Kogi State to take agricultural funding very important by ensuring timely and adequate release of funds to at least the 10% Maputo declaration of 2003.
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