Roles of public expenditures and public investments on the demand and productivity of agricultural inputs/services: Some insights from Nigeria PDF Download

Author: Takeshima, Hiroyuki
Publisher: Intl Food Policy Res Inst
ISBN:
Category : Political Science
Languages : en
Pages : 32

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Book Description
Knowledge gaps remain as to how longer-term public investments (PI) such as agricultural research and development (R&D), and short-term interventions through other public expenditures in agriculture (PEA) complement each other in enhancing productivity and efficiency in the agrifood sector. This study attempts to partly fill this gap by using nationally representative panel household survey data, subnational PEA data, locations of national agricultural R&D, and various spatial agroclimatic data in Nigeria. The analyses generally indicate that marginal returns to agricultural inputs/services (fertilizer, agricultural mechanization, irrigation, extension, agricultural equipment, and family labor) often increase by PI that raise overall agroclimatic similarity (AS) (through R&D locations), as well as increase PEA-share by subnational governments. There is often complementarity between these PI and PEA, particularly for extension services, investment in agricultural equipment, irrigation, and in the northern part of the country. Promoting further adoptions of modern inputs/services, increasing PEA-share, and selecting PI for agricultural R&D given in-country variations in agroclimatic conditions can help raise agricultural profitability and incomes in Nigeria.

Author: Hiroyuki Takeshima
Publisher:
ISBN:
Category :
Languages : en
Pages : 0

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Author: Mavrotas, George
Publisher: Intl Food Policy Res Inst
ISBN:
Category : Political Science
Languages : en
Pages : 23

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Book Description
Building on the work of earlier studies that looked at trends in and returns to federal public expenditures on agriculture in Nigeria, this paper explores spending patterns at the sub-national state level over a nine-year period, as well as trends in agricultural and economic performance and indicators of household welfare. Our examination focuses on two groupings of states – the full 37 state units of Nigeria (the 36 states, plus the Federal Capital Territory, Abuja); and the seven states that are the focus in Nigeria of the Global Food Security Strategy (GFSS) of the United States Agency for International Development. Sub-national agricultural spending as a share of aggregate agricultural spending in Nigeria is large, given the stronger role for sub-national governments in agriculture than is the case in other sectors. However, we find that the share of state-level expenditures on agriculture as a share of aggregate state-level expenditures is still relatively low, an average of 3.86 percent over the period 2007 to 2015. While the prioritization of agriculture spending varies greatly year by year, the variation over time does not have a discernible long-run upwards or downwards trend. We also find that agricultural expenditures are more capital intensive than are overall public expenditures at state level, but that capital expenditures as a share of total agriculture spending has decline over the last decade, as is the case overall in Nigeria’s industrial sectors. We conclude that efforts to strengthen state-level agricultural spending in Nigeria merits greater attention, while putting in place measures to ensure improved effectiveness in any such spending.

Author: Nwoko, Chinedum
Publisher: Intl Food Policy Res Inst
ISBN:
Category : Political Science
Languages : en
Pages : 36

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Book Description
This paper provides a broad view of public sector support to agriculture in Nigeria, through the lens of the allocation of public expenditures by the federal government in support of the sector. We consider the adequacy and stability of agricultural public spending during the period of 2007 to 2016, drawing on data from the Ministry of Finance, the Office of the Accountant General of the Federation, and other sources.

Author: Tewodaj Mogues
Publisher: Routledge
ISBN: 1136445404
Category : Business & Economics
Languages : en
Pages : 305

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Book Description
Whereas there is plenty of work looking at macroeconomic effect of public spending on growth and poverty in Africa as well as studies of the impact of spending or investment in one economic sector on outcomes in that sector or on broader welfare measures, this book fills a much needed gap in the research looking how the composition of public spending affects key development outcomes in the region. The book brings together recent analysis on the trends in, and returns to, public spending for agricultural growth and rural development in Africa. Case studies of selected African countries provide insights on the contributions of different types of public expenditures for poverty, growth and welfare outcomes, as well as insights into the constraints in gaining development mileage from investments in the agricultural sector.

Author: Mogues, Tewodaj
Publisher: Intl Food Policy Res Inst
ISBN:
Category : Political Science
Languages : en
Pages : 27

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Book Description
This paper makes a contribution to this literature by drawing on the framework of actor-centered institutionalism (Scharpf 1997) to empirically examine how political and budget institutions affect the incentives of actors involved in the public agricultural finance process, structures the interactions between them, and ultimately shapes expenditure allocations

Author: Takeshima, Hiroyuki
Publisher: Intl Food Policy Res Inst
ISBN:
Category : Political Science
Languages : en
Pages : 35

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Book Description
Agricultural development has long been considered an important driver of overall economic development in developing countries such as Nigeria. Whether increasing public expenditures on agriculture (PEA) can directly improve broad dimensions of household well-being has continued to be debated. In addition, there has been growing interest in the economic flexibility of households to switch between nonfarm and farming activities. Such flexibility can potentially enhance the resilience of households to shocks like the COVID-19 pandemic in today’s rapidly changing socioeconomic environments. Direct evidence of the impact of PEA on broad development outcomes is also important in informing regional initiatives aiming to use PEA as an instrument for overall food security enhancement and poverty reduction in Africa. Using state- and local government area (LGA)-level PEA figures and household data in Nigeria, this study aims to provide initial evidence at the household level in Nigeria. The findings suggest that greater PEA shares have positive effects on various development outcomes at the household level, including consumption, poverty reduction, nonfarm capital investments, and household dietary diversity. The findings also suggest that greater PEA shares are likely to help farm households enhance their economic flexibility. These findings are consistent with the hypotheses of positive linkages between PEA and agricultural outcomes, and linkages between agricultural and nonagricultural outcomes, often advocated in the literature. PEA should be increased by increasing its share of total public expenditures through conscious efforts to reallocate existing resources, rather than trying to increase it by increasing the overall size of public expenditures. Furthermore, it remains important to identify the appropriate sources (for example, spending by LGA or state) and types of PEA (for example, recurrent or capital spending) for particular development outcomes.

Author: Tewodaj Mogues, Michael Morris, Lev Freinkman, Abimbola Adubi, and Simeon Ehui, with Chinedum Nwoko, Olufemi Taiwo, Caroline Nege, Patrick Okonji, and Louis Chete
Publisher: Intl Food Policy Res Inst
ISBN:
Category : Social Science
Languages : en
Pages : 120

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Author: Mink, Stephen D.
Publisher: Intl Food Policy Res Inst
ISBN:
Category : Political Science
Languages : en
Pages : 52

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Book Description
This paper examines whether the consensus reached by the late 2000s among African Union member countries and their external partners on the need to reverse the decades-long decline in spending for essential public goods and services in agriculture has begun to result inimproved levels and quality of national expenditure programs for the sector. It synthesizes evidence from 20 Agriculture Public Expenditure Reviews (Ag PERs) that have been carried out in countries in Africa South of the Saharan (Botswana, Burkina Faso, Cameroon, Chad, Côte d’Ivoire, Democratic Republic of the Congo, Ghana, Guinea, Liberia, Madagascar, Mozambique, Rwanda, Nigeria, Senegal, Sierra Leone, South Africa, Tanzania, Togo, Uganda, and Zambia) with World Bank assistance during 2009–2015. This synthesis focuses on several measures: (1) the level of expenditures on agriculture, with particular reference to the explicit target by African heads of state in the 2003 Maputo Declaration on Agriculture and Food Security (reconfirmed in the Malabo Declaration) to allocate 10 percent of national budgets to the sector; (2) the composition and priorities of expenditures with respect to stated national strategies, evidence of impact, and sustainability; and (3) budget planning and implementation that aims to strengthen public financial management in general, and budget coherence, outputs, outcomes, and supporting mechanisms, such as procurement and audit, in particular. This paper uses Ag PERs to analyze budgetary trends across countries, identifies major expenditure issues, and synthesizes lessons regarding spending efficiency. The analysis results in evidence-based recommendations that address, inter alia, budget planning, budget execution, and monitoring for accountability; the creation of a reliable database; more effective intra-and intersectoral coordination; and the cost-effectiveness of different spending policies for meeting various objectives

Author: Xinshen Diao
Publisher:
ISBN:
Category :
Languages : en
Pages : 72

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Book Description
This study uses an economy-wide, dynamic computable general equilibrium (DCGE) model to analyze the ability of growth in various agricultural subsectors to accelerate overall economic growth and reduce poverty in Nigeria over the next years (2009-17). In addition, econometric methods are used to assess growth requirements in agricultural public spending and the relationship between public services and farmers' use of modern technology. The DCGE model results show that if certain agricultural subsectors can reach the growth targets set by the Nigerian government, the country will see 9.5 percent annual growth in agriculture and 8.0 percent growth of GDP over the next years. The national poverty rate will fall to 30.8 percent by 2017, more than halving the 1996 poverty rate of 65.6 percent and thereby accomplishing the first Millennium Development Goal (MDG1). This report emphasizes that in designing an agricultural strategy and prioritizing growth, it is important to consider the following four factors at the subsectoral level: (i) the size of a given subsector in the economy; (ii) the growth-multiplier effects occurring through linkages of the subsector with the rest of the economy; (iii) the subsector-led poverty reduction-growth elasticity; and (iv) the market opportunities and price effects for individual agricultural products. In analyzing the public investments that would be required to support a 9.5 percent annual growth in agriculture, this study first estimates the growth elasticity of public investments using historical spending and agricultural total factor productivity (TFP) growth data. The results show that a 1 percent increase in agricultural spending is associated with a 0.24 percent annual increase in agricultural TFP. With such low elasticity, agricultural investments must grow at 23.8 percent annually to support a 9.5 percent increase in agriculture. However, if the spending efficiency can be improved by 70 percent, the required agricultural investment growth becomes 13.6 percent per year. The study also finds that investments outside agriculture benefit growth in the agricultural sector. Thus, assessments of required growth in agricultural spending should include the indirect effects of nonagricultural investments and emphasize the importance of improving the efficiency of agricultural investments. To further show that efficiency in agricultural spending is critically important to agricultural growth, this study utilizes household-level data to empirically show that access to agricultural services has a significantly positive effect on the use of modern agricultural inputs.