Subnational public expenditures, short-term household-level welfare, and economic resilience: Evidence from Nigeria

Public expenditures (PE) are critical for key public sector functions that contribute to development and welfare improvements, including the provisions of necessary public goods and the mitigation of market failures. PE in social sectors, such as health, education, and social welfare, and in agricul...

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Autores principales: Takeshima, Hiroyuki, Balana, Bedru, Smart, Jenny, Edeh, Hyacinth O., Oyeyemi, Motunrayo Ayowumi, Andam, Kwaw S.
Formato: Artículo preliminar
Lenguaje:Inglés
Publicado: International Food Policy Research Institute 2021
Materias:
Acceso en línea:https://hdl.handle.net/10568/143914
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author Takeshima, Hiroyuki
Balana, Bedru
Smart, Jenny
Edeh, Hyacinth O.
Oyeyemi, Motunrayo Ayowumi
Andam, Kwaw S.
author_browse Andam, Kwaw S.
Balana, Bedru
Edeh, Hyacinth O.
Oyeyemi, Motunrayo Ayowumi
Smart, Jenny
Takeshima, Hiroyuki
author_facet Takeshima, Hiroyuki
Balana, Bedru
Smart, Jenny
Edeh, Hyacinth O.
Oyeyemi, Motunrayo Ayowumi
Andam, Kwaw S.
author_sort Takeshima, Hiroyuki
collection Repository of Agricultural Research Outputs (CGSpace)
description Public expenditures (PE) are critical for key public sector functions that contribute to development and welfare improvements, including the provisions of necessary public goods and the mitigation of market failures. PE in social sectors, such as health, education, and social welfare, and in agriculture have been increasingly recognized as potentially important for income growth, poverty reduction, fostering increased private investment, improved nutritional outcomes, and greater economic resilience. Furthermore, the importance of the impact of subnational PE on these outcomes has also been recognized, as appropriately decentralized PE systems can potentially achieve greater effectiveness by enabling public sector support that is tailored more to local needs. However, direct evidence of these developmental effects of decentralized PE in developing countries like Nigeria has been relatively limited. This study attempts to fill this knowledge gap by estimating the effects of shares of total subnational PE for agriculture, health, education, and social welfare, as well as PE size, on household-level outcomes using nationally-representative panel household data and both local government area and higher state-level PE data for Nigeria. We find that greater shares of total PE for agriculture, health, and social welfare, conditional on PE size, generally have positive effects on consumption, poverty reduction, and non-farm business capital investments. A greater share of total PE for agriculture benefits a broader range of outcomes than do greater shares of total PE for health and social welfare. These include improving certain nutritional outcomes, like household dietary diversity across seasons, and economic flexibility between farm and non-farm activities, which may be particularly important for building resilience in today’s rapidly changing socioeconomic environment due to shocks, including COVID19. Such multi-dimensional benefits of greater PE for agriculture are particularly worthy of attention in countries like Nigeria, which have historically allocated a lower share of total PE to agriculture than to health and other social welfare sectors and a lower share of total PE to agriculture compared to that allocated to agriculture in similar countries in Africa and elsewhere.
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spelling CGSpace1439142025-11-06T07:36:11Z Subnational public expenditures, short-term household-level welfare, and economic resilience: Evidence from Nigeria Takeshima, Hiroyuki Balana, Bedru Smart, Jenny Edeh, Hyacinth O. Oyeyemi, Motunrayo Ayowumi Andam, Kwaw S. expenditure social structure public expenditures poverty alleviation consumption households welfare agriculture household consumption resilience Public expenditures (PE) are critical for key public sector functions that contribute to development and welfare improvements, including the provisions of necessary public goods and the mitigation of market failures. PE in social sectors, such as health, education, and social welfare, and in agriculture have been increasingly recognized as potentially important for income growth, poverty reduction, fostering increased private investment, improved nutritional outcomes, and greater economic resilience. Furthermore, the importance of the impact of subnational PE on these outcomes has also been recognized, as appropriately decentralized PE systems can potentially achieve greater effectiveness by enabling public sector support that is tailored more to local needs. However, direct evidence of these developmental effects of decentralized PE in developing countries like Nigeria has been relatively limited. This study attempts to fill this knowledge gap by estimating the effects of shares of total subnational PE for agriculture, health, education, and social welfare, as well as PE size, on household-level outcomes using nationally-representative panel household data and both local government area and higher state-level PE data for Nigeria. We find that greater shares of total PE for agriculture, health, and social welfare, conditional on PE size, generally have positive effects on consumption, poverty reduction, and non-farm business capital investments. A greater share of total PE for agriculture benefits a broader range of outcomes than do greater shares of total PE for health and social welfare. These include improving certain nutritional outcomes, like household dietary diversity across seasons, and economic flexibility between farm and non-farm activities, which may be particularly important for building resilience in today’s rapidly changing socioeconomic environment due to shocks, including COVID19. Such multi-dimensional benefits of greater PE for agriculture are particularly worthy of attention in countries like Nigeria, which have historically allocated a lower share of total PE to agriculture than to health and other social welfare sectors and a lower share of total PE to agriculture compared to that allocated to agriculture in similar countries in Africa and elsewhere. 2021-10-18 2024-05-22T12:18:02Z 2024-05-22T12:18:02Z Working Paper https://hdl.handle.net/10568/143914 en https://doi.org/10.2499/p15738coll2.133854 https://doi.org/10.2499/p15738coll2.133848 https://doi.org/10.2499/p15738coll2.135843 https://doi.org/10.2499/p15738coll2.134674 https://doi.org/10.1111/agec.12710 Open Access application/pdf International Food Policy Research Institute Takeshima, Hiroyuki; Balana, Bedru; Smart, Jenny; Edeh, Hyacinth; Oyeyemi, Motunrayo Ayowumi; and Andam, Kwaw S. 2021. Subnational public expenditures, short-term household-level welfare, and economic resilience: Evidence from Nigeria. NSSP Working Paper 68. Washington, DC: International Food Policy Research Institute (IFPRI). https://doi.org/10.2499/p15738coll2.134672.
spellingShingle expenditure
social structure
public expenditures
poverty alleviation
consumption
households
welfare
agriculture
household consumption
resilience
Takeshima, Hiroyuki
Balana, Bedru
Smart, Jenny
Edeh, Hyacinth O.
Oyeyemi, Motunrayo Ayowumi
Andam, Kwaw S.
Subnational public expenditures, short-term household-level welfare, and economic resilience: Evidence from Nigeria
title Subnational public expenditures, short-term household-level welfare, and economic resilience: Evidence from Nigeria
title_full Subnational public expenditures, short-term household-level welfare, and economic resilience: Evidence from Nigeria
title_fullStr Subnational public expenditures, short-term household-level welfare, and economic resilience: Evidence from Nigeria
title_full_unstemmed Subnational public expenditures, short-term household-level welfare, and economic resilience: Evidence from Nigeria
title_short Subnational public expenditures, short-term household-level welfare, and economic resilience: Evidence from Nigeria
title_sort subnational public expenditures short term household level welfare and economic resilience evidence from nigeria
topic expenditure
social structure
public expenditures
poverty alleviation
consumption
households
welfare
agriculture
household consumption
resilience
url https://hdl.handle.net/10568/143914
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