The bang for the birr: Public expenditures and rural welfare in Ethiopia

This paper explores and compares the impact of different types of public spending on rural household welfare in Ethiopia. The analysis of public financial and household-level data reveals that returns to road investments are significantly higher than returns to other spending, but are much more vari...

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Autores principales: Mogues, Tewodaj, Ayele, Gezahegn, Paulos, Zelekawork
Formato: Artículo preliminar
Lenguaje:Inglés
Publicado: International Food Policy Research Institute 2007
Materias:
Acceso en línea:https://hdl.handle.net/10568/160204
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author Mogues, Tewodaj
Ayele, Gezahegn
Paulos, Zelekawork
author_browse Ayele, Gezahegn
Mogues, Tewodaj
Paulos, Zelekawork
author_facet Mogues, Tewodaj
Ayele, Gezahegn
Paulos, Zelekawork
author_sort Mogues, Tewodaj
collection Repository of Agricultural Research Outputs (CGSpace)
description This paper explores and compares the impact of different types of public spending on rural household welfare in Ethiopia. The analysis of public financial and household-level data reveals that returns to road investments are significantly higher than returns to other spending, but are much more variable across regions. This regional variability in returns to road investment suggests that the government should carefully consider region-differentiated investment priorities. Some evidence suggests that the returns to road spending are increasing over time, with higher returns to road investments seen in areas with better-developed road networks. Among the other types of public spending, the household expenditure impacts of per capita public expenditure in agriculture and education are smaller, but these effects are also less variable across regions than the effects of road infrastructure spending. The largest effects of agricultural expenditures on rural households are observed in the most urbanized regions, pointing to the potentially important impact of market proximity on returns to public interventions in agriculture. Despite the importance of agriculture to the economy of Ethiopia we found that returns to agricultural spending were fairly low, suggesting the need for further research into the drivers of efficiency and effectiveness of public investments in this important sector.
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spelling CGSpace1602042025-11-06T05:34:33Z The bang for the birr: Public expenditures and rural welfare in Ethiopia Mogues, Tewodaj Ayele, Gezahegn Paulos, Zelekawork public finance rural welfare This paper explores and compares the impact of different types of public spending on rural household welfare in Ethiopia. The analysis of public financial and household-level data reveals that returns to road investments are significantly higher than returns to other spending, but are much more variable across regions. This regional variability in returns to road investment suggests that the government should carefully consider region-differentiated investment priorities. Some evidence suggests that the returns to road spending are increasing over time, with higher returns to road investments seen in areas with better-developed road networks. Among the other types of public spending, the household expenditure impacts of per capita public expenditure in agriculture and education are smaller, but these effects are also less variable across regions than the effects of road infrastructure spending. The largest effects of agricultural expenditures on rural households are observed in the most urbanized regions, pointing to the potentially important impact of market proximity on returns to public interventions in agriculture. Despite the importance of agriculture to the economy of Ethiopia we found that returns to agricultural spending were fairly low, suggesting the need for further research into the drivers of efficiency and effectiveness of public investments in this important sector. 2007 2024-11-21T09:50:15Z 2024-11-21T09:50:15Z Working Paper https://hdl.handle.net/10568/160204 en Open Access application/pdf International Food Policy Research Institute Mogues, Tewodaj; Ayele, Gezahegn; Paulos, Zelekawork. The bang for the birr: Public expenditures and rural welfare in Ethiopia. IFPRI Discussion Paper 702. International Food Policy Research Institute (IFPRI). https://hdl.handle.net/10568/160204
spellingShingle public finance
rural welfare
Mogues, Tewodaj
Ayele, Gezahegn
Paulos, Zelekawork
The bang for the birr: Public expenditures and rural welfare in Ethiopia
title The bang for the birr: Public expenditures and rural welfare in Ethiopia
title_full The bang for the birr: Public expenditures and rural welfare in Ethiopia
title_fullStr The bang for the birr: Public expenditures and rural welfare in Ethiopia
title_full_unstemmed The bang for the birr: Public expenditures and rural welfare in Ethiopia
title_short The bang for the birr: Public expenditures and rural welfare in Ethiopia
title_sort bang for the birr public expenditures and rural welfare in ethiopia
topic public finance
rural welfare
url https://hdl.handle.net/10568/160204
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