There is no doubt that governments must be having a role in enhancing economic sectors. This paper aimed at; improve understanding of the role of government expenditure and other factors like Subsidies, Trade Openness, Non Agricultural GDP, Arable Land and Prices in agricultural performance. The old theory about production factors are capital, land and labor is followed. Where indicated that the value added is the sum of the returns to land, labor and invested capital directly involved in the productive activity. This basic model is based on the fact that total agricultural output is a homogeneous linear function of three specific factors of production, in addition to the total intermediate inputs. The three factors are labor, land, and capital. The price of the final product, the price of intermediate production inputs, and the productivity index are considered. Regarding other influential factors, the model assumed their stability.

The paper relied on secondary data from Egypt through the period (1987-2022). Natural logs, Augmented Dickey-Fuller, Johansen co-integration test and VECM are used to capture short and long-run dynamics of agricultural economic growth. The results indicated that; Government Expenditure in agricultural found in a positive relationship to growth in Agricultural Value Added. That result emphasis the important role of public expenditure in increasing the growth of agricultural sector in the case of Egypt's economy. In spite of, government tendency towards diminishing government expenditure, this result consistent to: the growth of agriculture can be further realized through adequate investment from public finance.

JEL classification: Q14 – E61 – O47

Key words: public expenditure, Agricultural Value Added, Subdidies, VECM, Egypt.