The Journal of Social Sciences Research ISSN(e): 2411-9458, ISSN(p): 2413-6670 Vol. 5, Issue. 12, pp: 1734-1742, 2019 URL: https://arpgweb.com/journal/journal/7 DOI: https://doi.org/10.32861/jssr.512.1734.1742 Academic Research Publishing Group *Corresponding Author 1734 Original Research Open Access Impact of Government Expenditure on Agricultural Productivity in South Africa Megbowon Ebenezer * Department of Agricultural Economics and Extension University of Fort Hare, South Africa Saul Ngarava Risk and Vulnerability Assessment Centre (RAVAC) University of Fort Hare, South Africa Nsikak-Abasi Etim Department of Agricultural Economics and Extension University of Uyo, Nigeria Oluwabunmi Popoola Department of Agricultural Economics and Extension University of Fort Hare, South Africa Abstract Government expenditure has been considered to be having an extent of impact on economic performance at both sectoral level and aggregate national level. Evidence from literature, however shows that this notion has not been generally accepted across countries and sectors. Considering the significance of agriculture in an economy most especially in Africa, and the consequent role of government, this study examines the impact of government expenditure on agricultural productivity in South Africa using annual time series data from 1983 to 2016. It is shown that there exists a long-run relationship between government expenditure on agriculture and agricultural productivity, and a positive significant effect only to be expected in the long-run. The finding underscores the non- negotiable role of the South African government funding of agricultural sector in an era of climate change and a highly commercialized agricultural system. Furthermore, considering the low and declining pattern of government expenditure in the sector in South Africa, the desired productivity growth impact will only be experienced in the long-run all things being equal. Improving government funding in the sector could accelerate the desired agricultural productivity in the short-term. Keywords: Agricultural productivity; Government expenditure; Food security; ARDL; South Africa. CC BY: Creative Commons Attribution License 4.0 1. Introduction Agriculture plays an indispensable role in the economic development process of developing countries and this role cannot be overemphasized. Wangusi and Muturi (2015), noted that agriculture is perceived to be an engine for overall economic development of developing countries. Dethier and Effenberger (2012), and Diao et al. (2010) noted that the agricultural sector undeniably contributes to employment generation, poverty reduction, improved livelihood of rural households and greater food security in the sub-Saharan Africa (SSA) region of the world. Agricultural productivity is an integral part of food security both at the micro-household level and national or international aggregate level. At the micro level, agricultural productivity influences supply of food at the household (i.e. food availability, food produce retained for household use) and the quantity of agricultural produce available for sale. This by extension has impact on the incomes of farmers and farm labourers, and the utilization of income to purchase other necessary food items for household consumption (that is economic food access), and household food expenditure which improves household real income or not. At the macro level which is the national and international levels, concerns for agricultural productivity is imperative for food security in the era of rapid population growth, increasing per capita food demand, food and agricultural commodity price instability and volatility and environmental challenges. Further explanation of agricultural-food security link is observed in the situation where agricultural commodity supplies depend on growth in productivity which is being affected more negatively by constraints in the availability of land and water resources for agricultural use. Hence, without doubt agricultural productivity is an important determinant of long-lasting food availability, access and stability which are elements of food security concerns, enhancement of farm and agro-industries as well as labour employment and welfare. Therefore, Asenso-Okyere and Jemaneh (2012) and Costaa et al. (2013) noted that raising agricultural productivity is necessary because it is the main sustainable and practical option needed to reduce food prices and improve food security situations Africa. Despite the importance of agricultural productivity, increasing productivity has not really been the experience in the Sub-Saharan African region. This concern of low agricultural productivity has led to increasing discussions on the causes of such in the region in recent years (Alabi, 2014). Reduction in agricultural investment has been identified as one of the key factors among several others that contributes to poor agricultural performance, productivity and growth (Islam, 2011). One of such investments is public domestic expenditure on agriculture. The rationale for government involvement in the agricultural sector include correcting externalities, providing goods that