This study examines the logical relationship between Agriculture Production and Government Expenditure in Nepal. The empirical research has applied Cochrane-Orcutt auto-regressive model from panel data for the period 1983/84 to 2013/14. In this regard, The empirical evidence confirm that the expenditure in agriculture sector is the causes of economic growth in Nepal. More specifically, iteration five gives the D-W value is 1.697 to compared tabulated dL , dU values are 1.284 and 1.567 at the two independent variables. The D -W value lies between dU and 4-dU, where this is nearest to 2.Sothat, there is no auto-correlation among error terms. Fact finding to shows that, the checking results homogeneous with theory and healthy and strong of the conclusion.
Keywords: Agriculture Production, Cochrane-Orcutt, Empirical Research, Government Expenditure
