An examination of Public Expenditure, Private investment and Agricultural Sector Growth in Nigeria: Bounds Testing Approach
Elijah Udoh

Abstract
This article estimated the relationship between public expenditure, private investment and agricultural output growth in Nigeria over the period 1970-2008. The bounds test and Autoregressive distributed lag (ARDL) modelling approach was used to analyze both short- and long-run impacts of public expenditure, private investment (both domestic investment and foreign direct investment) on agricultural output growth in Nigeria. Results of the error correction model show that increase in public expenditure has a positive influence on the growth of the agricultural output. However, foreign investment has insignificant impact in the short run. Hence, it is recommended that policymakers should combined both private and public investment in a complementary manner to ensure that both short run and long run productivity of the agricultural sector is not undermined.

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