Do government’s agricultural expenditure and its growth are cointegrated? - A case of Nepal.
- Pankaj Koirala
This study has examined the short-run and long-run relationship between the government expenditure on agriculture and agricultural Gross Domestic Production (AGDP) using time series data from 1972 to 2016. Autoregressive Distributed Lag (ARDL) bounds testing model is used to establish the short-run and long-run relationships between variables of interest. Findings show that the government expenditure in the agriculture sector does not have a significant contribution to the country's AGDP in short-run, while they are weakly cointegrated in the long-run. The results demonstrate that the existing government expenditure in the agriculture sector has limited contribution to agricultural growth, potentially indicating inefficiencies and ineffectiveness in the existing government's expenditure.
