scholarly journals Complement or substitute: Private investment, public expenditure and agricultural productivity in Nigeria

2021 ◽  
Vol 16 (3) ◽  
pp. 181-192
Author(s):  
Philip Ifeakachukwu Nwosa ◽  
Keyword(s):  
Commercial Bank ◽  
Public Expenditure ◽  
Agricultural Sector ◽  
Government Expenditure ◽  
Agricultural Productivity ◽  
Private Investment ◽  
Bank Credit ◽  
Vector Error Correction ◽  
Vector Error ◽  
Budgetary Allocation

This study examines the complementarity and substitutability effect of private investment and public expenditure on agricultural productivity in Nigeria for the period 1978 to 2018. The study employs the vector error correction modelling (VECM) technique, and the estimate shows that government expenditure on the agricultural sector had the most significant effect on agricultural productivity, followed by commercial bank credit for the agricultural sector. Also, the study found that public expenditure (proxied by government expenditure on the agricultural sector) and private investment (proxied by commercial bank credit for the agricultural sector) are complementary investments in promoting agricultural productivity, while public expenditure on the agricultural sector and foreign direct investment are substitute investments. The study recommends that budgetary allocation to the agricultural sector should be increased, and that commercial banks should be strengthened through the monetary authority by advancing more loans to agricultural businessmen and businesswomen at a reduced lending rate.

scholarly journals Determinants of Agricultural Productivity in India: An Econometric Analysis

2018 ◽  
Vol 4 (02) ◽  
Author(s):  
Biswashree Tanaya Priyadarsini ◽  
Chittaranjan Nayak
Keyword(s):  
Agricultural Sector ◽  
Agricultural Productivity ◽  
Private Investment ◽  
Vector Error Correction Model ◽  
Correction Model ◽  
Vector Error Correction ◽  
Vector Error ◽  
Long Run ◽  
Specific Support ◽  
Short Run

The main aim of this paper is to examine both short run and long run effects of various factors on agricultural productivity in India. The present study used the annual time series data covering the time period from 1980 to 2013. Johansen cointegration and vector error correction model are adopted in order to examine the objective of the study. The study has analysed the relative effectiveness of various factors like Irrigation (PGIA), Fertilizer (FERT), Electricity (ELCT), Private investment in agriculture (PII) and Non-product specific support to inputs (NPSS) on agricultural productivity. The cointegration results suggest that there is a long run equilibrium relationship between all the determinants and agricultural productivity. The vector error correction model indicates that there is long run causality running from PGIA, FERT, NPSS, ELCT, and PII to Productivity meaning that all the factors have significant influence on productivity in long run. However, as regards short run, only PGIA and PII have significant impact on agricultural productivity. The study suggests that the government should take initiative for non-product specific support to major inputs like organic fertilizer, power and irrigation and also promote private investment in agricultural sector to enhance agricultural productivity which will go a long way in development of agricultural sector.

scholarly journals Government Expenditure and Economic Growth in South Africa: A Vector Error Correction Modelling and Granger Causality Test

2017 ◽  
Vol 9 (4) ◽  
pp. 164
Author(s):  
Kagiso Molefe ◽  
Ireen Choga
Keyword(s):  
Economic Growth ◽  
South Africa ◽  
Error Correction ◽  
Granger Causality ◽  
Time Series Data ◽  
Government Expenditure ◽  
Series Data ◽  
Vector Error Correction ◽  
Vector Error ◽  
The Relationship

Previous studies generally find mixed empirical evidence on the relationship between government spending and economic growth. This study re-examine the relationship between government expenditure and economic growth in South Africa for the period of 1990 to 2015 using the Vector Error Correction Model and Granger Causality techniques. The time series data included in the model were gross domestic Product (GDP), government expenditure, national savings, government debt and consumer price index or inflation. Results obtained from the analysis showed a negative long-run relationship between government expenditure and economic growth in South Africa. Furthermore, the estimate of the speed of adjustment coefficient found in this study has revealed that 49 per cent of the variation in GDP from its equilibrium level is corrected within of a year. Furthermore, the study discovered that the causality relationship run from economic growth to government expenditure. This implied that the Wagner’s law is applicable to South Africa since government expenditure is an effect rather than a cause of economic growth. The results presented in this study are similar to those in the literature and are also sustained by preceding studies.

scholarly journals Sustainable Knowledge Investment Increases Employment and GDP in the Spanish Agricultural Sector More Than Other Investments

2020 ◽  
Vol 12 (8) ◽  
pp. 3127
Author(s):  
Carolina Cosculluela-Martínez
Keyword(s):  
Agricultural Sector ◽  
First Year ◽  
Long Term Effects ◽  
Correction Model ◽  
Vector Error Correction ◽  
Vector Error ◽  
Short And Long Term ◽  
Stock Types ◽  
Processing Techniques

Investment in every type of asset increases GDP and net employment differently. This paper compares the effect produced by a permanent unitary shock in Sustainable Knowledge for the Primary Sector (SKPS) on the Spanish employment and GDP growth with the effect produced by the other fourteen capital stock types. The methodology used is a Vector Error Correction Model (VECM), where the complementary capital can affect SKPS instantaneously. The results suggest that SKPS produces the second-highest, short and long-term effects on both labor and production, per Euro invested; moreover, the investment of 4.3 thousand euros is retrieved in the first year and increases net employment in one person after four years. Accordingly, the 5 million Euro Budget to invest in sustainable machinery and processing techniques increases net employment by 827 employees.

scholarly journals Deteminant factors to improve Indonesian cocoa performance

2021 ◽  
Vol 892 (1) ◽  
pp. 012073
Author(s):  
A Prasetyo ◽  
Suswadi ◽  
A F Aziez
Keyword(s):  
Exchange Rate ◽  
Agricultural Sector ◽  
Time Series Data ◽  
Export Performance ◽  
Series Data ◽  
Causality Test ◽  
Vector Error Correction ◽  
Multilateral Cooperation ◽  
Vector Error ◽  
Cocoa Production

Abstract Encouraging the growth of Indonesia’s agricultural sector is important for improving the export performance of Indonesia’s leading commodities. The purpose of the study was to determine the effect of the IDR exchange rate and the shock of the determinants of cocoa exports on the growth of Indonesian cocoa exports. The research was conducted using time series data from 1969-2017. This study uses the Vector Error Correction Model (VECM). The analysis showed that the data is stationary at the first difference. The causality test shows that cocoa production, IDR exchange rate, GDP affect the growth of Indonesian cocoa exports, but world cocoa prices have no effect on cocoa exports. The results of the impulse response factor (IRF) analysis show that the response of cocoa exports to changes in the exchange rate is more volatile when compared to the response of production, GDP, and world cocoa prices to Indonesian cocoa exports. Analysis of variance decomposition shows that the contribution of the IDR exchange rate to export growth is greater than the contribution of world cocoa prices, GDP, and production at the beginning of exports, however over time the influence of the IDR exchange rate will decrease and it is the number of production factors that will affect Indonesia’s cocoa exports. Indonesia needs to increase production by maintaining the quality of cocoa according to export needs considering the demand for cocoa that will continue to increase. Bilateral or multilateral cooperation is needed to strengthen cocoa export cooperation with major importing.

scholarly journals Public Debt Management and Macroeconomics Policies Coordination: Evidence from Jordan

2021 ◽  
Vol 9 (36) ◽  
pp. 59-72
Author(s):  
Jumah Ahmad Alzyadat
Keyword(s):  
Public Debt ◽  
Tax Evasion ◽  
Government Expenditure ◽  
Impulse Response Function ◽  
Policy Instruments ◽  
Debt Management ◽  
Dynamic Interactions ◽  
Monetary Policies ◽  
Vector Error Correction ◽  
Vector Error

This study aimed to analyze the effects of fiscal and monetary policies interactions on public debt in Jordan during (1970 – 2019). Using Vector Error Correction Model (VECM) derived from VAR (Vector Auto regression), and examine dynamic interactions between economic variables over time, by Appling Impulse Response Function, and Variance Decomposition. The results indicated that the fiscal policy instruments affect public debt in two different directions, the expansion of government expenditure positively affect public debt, while tax revenues reduce indebtedness. The monetary policy instruments affect public debt in the same directions, as the results indicated that the central bank in controlling money supply and managing interest rate helps the fiscal authority in reducing the public debt in Jordan. The results confirm the strongest impact of government expenditure on public debt in Jordan. The study recommends the necessity of rationalizing government expenditures and combating tax evasion. In addition, more coordination between fiscal and monetary policies.

scholarly journals Empirical Evidence of a Long-Run Relationship Between Agriculture and Manufacturing Industry Output in Nigeria

SAGE Open ◽  
2020 ◽  
Vol 10 (1) ◽  
pp. 215824401989904
Author(s):  
Eze Simpson Osuagwu
Keyword(s):  
Manufacturing Industry ◽  
Agricultural Productivity ◽  
Granger Causality Test ◽  
Vector Error Correction Model ◽  
Causality Test ◽  
Correction Model ◽  
Vector Error Correction ◽  
Vector Error ◽  
Long Run ◽  
Industry Output

This study investigates a long-run relationship between agriculture and manufacturing industry output in Nigeria using annual time series data from 1982 to 2017. The study employs Granger causality test, vector error correction model, and co-integration techniques to estimate the interdependence between agricultural productivity and manufacturing industry output. Empirical evidence from Granger causality test reveals a bidirectional relationship between agricultural productivity and manufacturing industry output. Although a positive and significant relationship exists in the short- and long-run estimates, a long-run divergence from the vector error correction model indicates that changes in agricultural productivity are not restored to equilibrium, given that macroeconomic factors distort the linkage. Policy implications suggest that macroeconomic stability is a necessary condition for agriculture and manufacturing industry output to foster economic growth.

scholarly journals Agricultural Mechanization as an Expansion Factor of Cropland in Benin: The Case of Tractors

2018 ◽  
Vol 7 (4) ◽  
pp. 1 ◽  
Author(s):  
Ichaou Mounirou
Keyword(s):  
Agricultural Sector ◽  
Cotton Production ◽  
Vector Error Correction ◽  
The North ◽  
Vector Error ◽  
Agricultural Mechanization ◽  
Vec Model ◽  
The One ◽  
Agricultural Investments ◽  
The Impact

We propose in this paper a methodology based on the vector error correction (VCE) model. This modeling approach makes it possible to use a large database to model the impact of agricultural mechanization on cropland in Benin. The results of the VEC model estimates confirm a positive relationship between agricultural mechanization and the areas planted of paddy rice, millet and yams. Moreover, the findings suggest that agricultural mechanization is still far to boost the land uses of cotton, maize and cassava, despite the importance of cotton in the Beninese economy on the one hand, and the key roles of maize and cassava in diet in Benin, on the other hand. Agricultural mechanization is far from being a reality in Benin's agricultural sector to the extent that public agricultural investments are below the Maputo agreements (Note 1). An effective agricultural mechanization must opt for cereals whose investments in agricultural machinery are less expensive compared to cotton. This strategy of agricultural mechanization makes it possible to better ensure food security, unlike the intensive cotton production, whose terms of trade are always unfavorable and dependent on subsidies from the North.

scholarly journals Revenue-Expenditure Nexus for India

2017 ◽  
Vol 3 (1) ◽  
Author(s):  
Sanhita Sucharita
Keyword(s):  
Temporal Relationship ◽  
Public Expenditure ◽  
Government Revenue ◽  
Total Expenditure ◽  
Vector Error Correction ◽  
Vector Error ◽  
Long Run ◽  
The Empirical Analysis ◽  
Over Time ◽  
Made In

This paper attempts to find out the inter-temporal relationship between government expenditures and revenues in India. It tries to find out if the variations in revenues cause variations in expenditures or the variation in expenditure cause variation in revenue. It also analyses the trend and composition of rising public expenditure in India. This paper has used vector error correction mechanism to find out the causality between the governments total expenditure and revenue receipt. The empirical analysis suggests long run causality from Government revenue receipts to Government total expenditure. It supports the tax-spend hypothesis that means over time, expenditure decisions are not made in isolation of revenue receipts.

scholarly journals Analisis Pengaruh Variabel Makroekonomi terhadap Return Saham Syariah Sektor Pertanian yang terdaftar di ISSI Periode 2011-2018

2020 ◽  
Vol 6 (10) ◽  
pp. 1953
Author(s):  
Achmad Kharis ◽  
Imron Mawardi
Keyword(s):  
Exchange Rates ◽  
Agricultural Sector ◽  
Stock Index ◽  
Correction Model ◽  
Vector Error Correction ◽  
Agriculture Sector ◽  
Vector Error ◽  
Long Run ◽  
Analysis Technique ◽  
Research Period

This study aims to determine the effect of GDP, Inflation, SBIS, Exchange Rates against Returns on Sharia Stocks in the Agriculture Sector Listed in the Indonesian Sharia Stock Index (ISSI). The approach used is quantitative by using the Vector Error Correction Model (VECM) analysis technique with the STATA program. While the GDP, Inflation, SBIS, Exchange Rates as independent variables and Returns on Sharia Stocks in the Agriculture Sector Listed in the Indonesian Sharia Stock Index (ISSI) as the dependent variable. The results of this study indicate that in the short term only GDP has a negative and significant effect. Whereas in the long run the GDP has a negative and significant effect, inflation has a positive and significant effect, SBIS has a negative and significant effect, Exchange rates have a positive and significant effect on the return of Agricultural Sector Sharia Shares registered at ISSI on the research period from 2011 to 2018.Keywords: GDP, Inflation, SBIS, Exchange Rates and Returns on Sharia Stocks in the Agriculture Sector Listed in ISSI

Sign in / Sign up

Export Citation Format

Share Document