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Government Expenditure On Agriculture And Agricultural Performance In Developing Countries: An Empirical Evalution

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  • D. Diakosavvas
Abstract
In recent years, new prominence has been assigned to the effects of non‐price measures on the performance of the agricultural sector in developing countries. Nevertheless, the contribution of government expenditure to agricultural output growth has not received its due attention. This paper endeavours to estimate the impact of government expenditure (on agriculture) on the performance of the agricultural sector. An inter‐country production function is estimated for a sample of thirty‐five developing countries, pooling cross‐section and time‐series data over the 1974‐84 period. The influence of instability in government expenditure on agriculture and on agricultural growth is also assessed. The results show that government expenditure policies are of vital importance in influencing the performance of the agricultural sector. It was also found that instability in government expenditure is a deterrent to agricultural output growth.

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  • D. Diakosavvas, 1990. "Government Expenditure On Agriculture And Agricultural Performance In Developing Countries: An Empirical Evalution," Journal of Agricultural Economics, Wiley Blackwell, vol. 41(3), pages 381-389, September.
    • Handle: RePEc:bla:jageco:v:41:y:1990:i:3:p:381-389
    DOI: 10.1111/j.1477-9552.1990.tb00654.x
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    References listed on IDEAS

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    1. Yujiro Hayami, 1969. "Sources of Agricultural Productivity Gap Among Selected Countries," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 51(3), pages 564-575.
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    4. Lim, David, 1983. "Government recurrent expenditure and economic growth in less developed countries," World Development, Elsevier, vol. 11(4), pages 377-380, April.
    5. Yair Mundlak & René Hellinghausen, 1982. "The Intercountry Agricultural Production Function: Another View," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 64(4), pages 664-672.
    6. Elías, Victor Jorge, 1985. "Government expenditures on agriculture and agricultural growth in Latin America:," Research reports 50, International Food Policy Research Institute (IFPRI).
    7. Antle, John M, 1983. "Infrastructure and Aggregate Agricultural Productivity: International Evidence," Economic Development and Cultural Change, University of Chicago Press, vol. 31(3), pages 609-619, April.
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    Cited by:

    1. Mavrotas, George & Mogues, Tewodaj & Oyeyemi, Motunrayo & Smart, Jenny & Xiong, Zhe, 2018. "Agricultural public expenditures, sector performance, and welfare in Nigeria: A state-level analysis," NSSP working papers 60, International Food Policy Research Institute (IFPRI).
    2. Mogues, Tewodaj & Yu, Bingxin & Fan, Shenggen & McBride, Linden, 2012. "The impacts of public investment in and for agriculture: synthesis of the existing evidence," ESA Working Papers 288994, Food and Agriculture Organization of the United Nations, Agricultural Development Economics Division (ESA).
    3. Emerta Aragie & Jean Balié, 2021. "Public spending on agricultural productivity and rural commercialization: A comparison of impacts using an economy‐wide approach," Development Policy Review, Overseas Development Institute, vol. 39(S1), pages 21-41, August.

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