Public spending in developing countries: trends, determination, and impact

The objective of this paper is to review trends in government expenditures in the developing world, to analyze the causes of change, and to develop an analytical framework for determining the differential impacts of various government expenditures on economic growth. Contrary to common belief, it is...

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Autores principales: Fan, Shenggen, Rao, Neetha
Formato: Artículo preliminar
Lenguaje:Inglés
Publicado: International Food Policy Research Institute 2003
Materias:
Acceso en línea:https://hdl.handle.net/10568/156219
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author Fan, Shenggen
Rao, Neetha
author_browse Fan, Shenggen
Rao, Neetha
author_facet Fan, Shenggen
Rao, Neetha
author_sort Fan, Shenggen
collection Repository of Agricultural Research Outputs (CGSpace)
description The objective of this paper is to review trends in government expenditures in the developing world, to analyze the causes of change, and to develop an analytical framework for determining the differential impacts of various government expenditures on economic growth. Contrary to common belief, it is found that structural adjustment programs increased the size of government spending, but not all sectors received equal treatment. As a share of total government spending, expenditures on agriculture, education, and infrastructure in Africa; on agricultural and health in Asia; and on education and infrastructure in Latin America, all declined as a result of the structural adjustment programs. The impact of various types of government spending on economic growth is mixed. In Africa, government spending on agriculture and health was particularly strong in promoting economic growth. Asia's investments in agriculture, education, and defense had positive growth-promoting effects. However, all types of government spending except health were statistically insignificant in Latin America. Structural adjustment programs promoted growth in Asia and Latin America, but not in Africa. Growth in agricultural production is most crucial for poverty alleviation in rural areas. Agricultural spending, irrigation, education, and roads all contributed strongly to this growth. Disaggregating total agricultural expenditures into research and non-research spending reveals that research had a much larger impact on productivity than non-research spending.
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spelling CGSpace1562192025-11-06T05:00:36Z Public spending in developing countries: trends, determination, and impact Fan, Shenggen Rao, Neetha poverty alleviation economic policies structural adjustment development indicators public expenditure economic growth structural change agricultural growth education institutions infrastructure health services irrigation research support The objective of this paper is to review trends in government expenditures in the developing world, to analyze the causes of change, and to develop an analytical framework for determining the differential impacts of various government expenditures on economic growth. Contrary to common belief, it is found that structural adjustment programs increased the size of government spending, but not all sectors received equal treatment. As a share of total government spending, expenditures on agriculture, education, and infrastructure in Africa; on agricultural and health in Asia; and on education and infrastructure in Latin America, all declined as a result of the structural adjustment programs. The impact of various types of government spending on economic growth is mixed. In Africa, government spending on agriculture and health was particularly strong in promoting economic growth. Asia's investments in agriculture, education, and defense had positive growth-promoting effects. However, all types of government spending except health were statistically insignificant in Latin America. Structural adjustment programs promoted growth in Asia and Latin America, but not in Africa. Growth in agricultural production is most crucial for poverty alleviation in rural areas. Agricultural spending, irrigation, education, and roads all contributed strongly to this growth. Disaggregating total agricultural expenditures into research and non-research spending reveals that research had a much larger impact on productivity than non-research spending. 2003 2024-10-24T12:43:30Z 2024-10-24T12:43:30Z Working Paper https://hdl.handle.net/10568/156219 en Open Access application/pdf International Food Policy Research Institute Fan, Shenggen; Rao, Neetha. 2003. Public spending in developing countries: trends, determination, and impact. EPTD Discussion Paper 99. https://hdl.handle.net/10568/156219
spellingShingle poverty alleviation
economic policies
structural adjustment
development indicators
public expenditure
economic growth
structural change
agricultural growth
education
institutions
infrastructure
health services
irrigation
research support
Fan, Shenggen
Rao, Neetha
Public spending in developing countries: trends, determination, and impact
title Public spending in developing countries: trends, determination, and impact
title_full Public spending in developing countries: trends, determination, and impact
title_fullStr Public spending in developing countries: trends, determination, and impact
title_full_unstemmed Public spending in developing countries: trends, determination, and impact
title_short Public spending in developing countries: trends, determination, and impact
title_sort public spending in developing countries trends determination and impact
topic poverty alleviation
economic policies
structural adjustment
development indicators
public expenditure
economic growth
structural change
agricultural growth
education
institutions
infrastructure
health services
irrigation
research support
url https://hdl.handle.net/10568/156219
work_keys_str_mv AT fanshenggen publicspendingindevelopingcountriestrendsdeterminationandimpact
AT raoneetha publicspendingindevelopingcountriestrendsdeterminationandimpact