Public expenditure on agriculture and economic growth: a case study of Meghalaya

Abstract

This paper assesses the impact of government expenditure on agriculture and allied activities on economic growth (GSDP) in Meghalaya during the period 1984-85 to 2013-14. We find a significant positive impact of agricultural expenditure on crop husbandry on GSDP growth. On the other hand, the impact of public expenditure on forestry, dairy and irrigation is found out to be negative. These findings conclude that although crop husbandry happens to have a significant positive impact of economic growth, the need for strengthening its linkages with other sectors cannot be undermined given the small and declining size of landholdings in the state.

The impact of R&D investment on grain crops production in China: Analysing the role of agricultural credit and CO2 emissions

“…Similarly, literature provides evidence that the sensible usage of public spending on agriculture has the reasonable capacity to speed up agronomic progress and perk up its productivity (Dkhar & Kumar, 2018). Likewise, Salim and Islam (2010) detailed that agricultural R&D expands the farming output in the long run.…”

Effect of Government Agricultural Expenditure on Economic Growth: Evidence from a Developing Country

“…Government Agricultural Expenditure (GEA) are transfer made from the government to economic agents (producers and input suppliers), for general support for agricultural infrastructure, R&D and extension services, marketing, storage, or inspection facilities, among others, and administrative costs (that cost linked to policy formulation and coordination and running costs of ministries and other public entities (Pernechele et al, 2021). Based on the Keynes postulation and previous studies (Dkhar and De, 2018;Tijani et al, 2015;Shuaib et al, 2015), this study posits that government agricultural expenditure would have a positive effect of economic growth. Domestic Investment (DI) is an essential component that can enable economic growth (Overseas Development Institute, ODI, 2016).…”

“…Similarly, Chu et al, (2020), Amusa and Oyinola (2019), Ndubuisi (2018), Garoma and Bersisa (2018), Selvanathan et al, (2021), Arestis et al, (2021), Lupu et al, (2018), Mazorodze (2018) demonstrated using various analytical techniques that effect of government expenditure on growth depends on the sector recipient or functional component of government expenditure. In relation to government agricultural expenditure and economic growth Shuaib et al (2015), Ebenezer et al, (2019), and Dkhar and De (2018) showed that government expenditure on agriculture does influence agricultural productivity and economic growth positively in Nigeria, South Africa and Russia, respectively. Furthermore, evidence from empirical literature further show that several macroeconomic factors besides government expenditure influence the level of growth in an economy, the extent of their influences however differs across countries, regions, and income groups.…”

Examining the impact of farm management practices on wheat production: Does agricultural investment matter?

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