Exploration of public spending and gross domestic product's growth in agricultural sector: comparative analysis of Nigerian and Malaysian agricultural sector (1970-2010)

摘要

>Nigeria and Malaysia are at the same level in terms of economic growth in the 1960s, recent records revealed that Malaysia has advanced in economic evolution than Nigeria. The study examines public spending in Malaysia and Nigeria and provides lessons from Malaysian growth indices for Nigeria. Secondary data used were sourced from FAOSTAT and international data-centre from 1970-2010. A simple version of endogenous-growth theory model is adopted. Random effects model results revealed that Nigeria public-expenditure (PUEXP) and intervention (INTEV) variables were significant but negative, while enterprise-development (ENTDEV), drivers of development (DRIVERS) and dummy for modest public expenditure access (D_1t) is significant but positive. Similarly, in Malaysia, three variables were significant and positive at difference level, also dummies D_1t and D_2t (macroeconomic stability) are significant. Public expenditure and GDP growth has an inverse relationship in Nigeria and direct relationship in Malaysia. Modest public expenditure and macroeconomic stability are important development indices Nigeria must learn from Malaysia.