Impact of Fiscal Policy on Agricultural Output in Nigeria

  • Adedoyin Isola LAWAL Department of Accounting and Finance Landmark University, Nigeria
  • Ernest Onyebuchi FIDELIS Department of Accounting and Finance Landmark University, Nigeria
  • Abiola Ayoopo BABAJIDE Department of Banking and Finance Covenant Univeristy, Nigeria
  • Barnabas O. OBASAJU Department of Economics Landmark University, Nigeria
  • Oluwatoyese OYETADE Department of Economics Landmark University, Nigeria
  • Bukola LAWAL-ADEDOYIN Centre for System and Information Services Landmark Univerity, Nigeria
  • John Dean OJEKA College of Business and Social Sciences Landmark University, Nigeria
  • Oluwatosin S. OLANIRU Department of Public Administration, The Polytechnic Ibadan

Abstract

This study examines the impact of fiscal policy on agricultural output in Nigeria using the most recent official data. The metrics for fiscal policy is government capital expenditure and custom duties on fertilizer. The study used annual time series data obtained from CBN annual statistical bulletin, NCS, and FIRS which was found to be stationary at the order of I(1) and I(0). The order of unit root test led to the use of ARDL estimation method employed in the empirical analysis of this research work. The study found evidence of both short and long run relationship between the variables (VAO, GEX, IDMF, and ACGSF) using both Johansen co-integration and ARDL Bounds test. Although government expenditure (GEX) to agricultural sector was found to be statistically insignificant which recommend that government should increase agriculture capital expenditure to ensure that its contribution is significant. Consequently, custom duties on fertilizer (IDMF) was found to be negatively signed and significant indicating a negative impact on agricultural output. This demands that the policy makers should be prudent in the use of fiscal policy instrument in achieving its desired objective.

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Published
2019-03-03
How to Cite
LAWAL, Adedoyin Isola et al. Impact of Fiscal Policy on Agricultural Output in Nigeria. Journal of Environmental Management and Tourism, [S.l.], v. 9, n. 7, p. 1428-1442, mar. 2019. ISSN 2068-7729. Available at: <https://journals.aserspublishing.eu/jemt/article/view/2737>. Date accessed: 21 mar. 2019. doi: https://doi.org/10.14505//jemt.v9.7(31).08.