Abstract:
Abstract
This study empirically investigates the impact of Government Agricultural Expenditure on
Unemployment Rate in Nigeria from 1985 to 2015. The study used time series data and econometrics tools
were used for testing for the stationarity and causality. To show the impact and the relationships among
the variables Ordinary Least Squares (OLS) was used. From the result there is a strong relationship
between Unemployment Rate and Government agricultural Expenditure in Nigeria and the R2 of 0.62 per
cent indicates that 62 per cent of the variations in the Unemployment Rate is explained by variations in the
Total Agricultural Production in Nigeria, Total Agricultural Exportation in Nigeria, Government
Agricultural Capital Expenditure in Nigeria, Government Agricultural Recurrent Expenditure in Nigeria
and Total Expenditure in Nigeria. This implies that agricultural sector has impact on the reduction of
Unemployment Rate in Nigeria. The result shows that Total Agricultural Production in Nigeria, Total
Agricultural Exportation in Nigeria, Government Agricultural Capital Expenditure in Nigeria and
Government Agricultural Recurrent Expenditure in Nigeria are negatively related to Unemployment Rate
in Nigeria both Total Agricultural Production in Nigeria and Government Agricultural Capital
Expenditure in Nigeria were statistically significant at 5 per cent level of significance while Total
Agricultural Exportation in Nigeria and Government Agricultural Recurrent Expenditure in Nigeria were
statistically significant at 5 per cent level of significance. On the other hand Total Expenditure in Nigeria
is positively related to Unemployment Rate in Nigeria and it is statistically significant at 5 per cent level of
significance.
