Effect of Agriculture and Health Expenditures on Economic Growth in Nigeria

Fatuase, Adewale.I., Ehinmowo, Olubokola.O, Oparinde, Lawrence.O, Omonijo, Gabriel.A


The study employed autoregressive distributed lag (ARDL) model to describe the relationship that exists among economic growth, agriculture and health expenditures in Nigeria using time series data of 32 years’ period (1982 – 2012). The result showed that there exists a long-run equilibrium relationship between economic growth and government expenditures on agriculture and health in Nigeria. At the long run, the coefficient of agriculture was positive and statistically significant in influencing economic growth in Nigeria. On the other hand, health coefficient was negative and not statistically significant in affecting economic growth. The short-run dynamics adjusts to the long-run equilibrium at the rate of 28% per annum. The policy implication statistically is that both the short-run and long-run expenditure on agriculture has significant effect on economic growth in Nigeria for these periods of the analysis. It is therefore recommended that government should increase expenditure on agriculture so as to increase economic growth. If agriculture and health sectors can be given a priority in Nigeria by properly managing the available funds in the sectors, it will boost employment and as well improve the standard living of the Nigerians.

Keywords: agriculture, ARDL model, economic growth, health

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ISSN (Paper)2224-3208 ISSN (Online)2225-093X

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