A vector Error Correction Model Approach to Government Agricultural Expenditure on Agricultural Growth in Nigeria Under the Period of

Notwithstanding the enviable position of the oil sector in the Nigerian economy over the past three decades, the agricultural sector is arguably the most important sector of the economy. [...] This implies that the more the government spends on agricultural sector, the more the improvements in the performance of the agricultural sector. [...] The results of the study showed that there is a significant effect of government capital expenditure on the growth of the agricultural sector in Nigeria. [...] 𝛼0is the constant, 𝛼1 is the coefficient of the trend series, p is the lag order of the autoregressive process, 𝑌𝑡−𝑖 is the lag value of order one of 𝑌𝑡−𝑖 and 1is the error term. [...] The result is in agreement with the findings of Lawal (2011) who reported that government spending does not follow a regular pattern and that the contribution of the agricultural sector to the GDP is in direct relationship with government funding to the sector.