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Government Spending, Growth and Poverty in Rural India

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Author Info
Fan, Shenggen
Hazell, Peter
Thorat, Sukhadeo

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Abstract

Using state-level data for 1970-93, a simultaneous equation model was developed to estimate the direct and indirect effects of different types of government expenditure on rural poverty and productivity growth in India. The results show that in order to reduce rural poverty, the Indian government should give highest priority to additional investments in rural roads and agricultural research. These types of investment not only have much larger poverty impacts per rupee spent than any other government investment, but also generate higher productivity growth. Apart from government spending on education, which has the third largest marginal impact on rural poverty and productivity growth, other investments (including irrigation, soil and water conservation, health, and rural and community development) have only modest impacts on growth and poverty per additional rupee spent. Copyright 2000 by American Agricultural Economics Association

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Publisher Info
Article provided by American Agricultural Economics Association in its journal American Journal of Agricultural Economics.

Volume (Year): 82 (2000)
Issue (Month): 4 (November)
Pages: 1038-51
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Handle: RePEc:bla:ajagec:v:82:y:2000:i:4:p:1038-51

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  1. Saji M., 2006. "Constituting Development: Encountering the deprivation of the ‘poor’ under the ‘reform’ apparatus in India," Working Papers id:459, esocialsciences.com. [Downloadable!]
  2. Keith Fuglie, 2004. "Productivity growth in Indonesian agriculture, 1961-2000," Bulletin of Indonesian Economic Studies, Taylor and Francis Journals, vol. 40(2), pages 209-225, August. [Downloadable!] (restricted)
  3. Jung, Suhyun & Cho, Seong-Hoon & Roberts, Roland K., 2009. "Public Expenditure and Poverty Reduction in the Southern United States," 2009 Annual Meeting, January 31-February 3, 2009, Atlanta, Georgia 47145, Southern Agricultural Economics Association. [Downloadable!]
  4. Ramón López, 2007. "Fiscal policies in highly unequal societies: implications for agricultural growth," The Electronic Journal of Agricultural and Development Economics, Food and Agriculture Organization of the United Nations, vol. 4(1), pages 123-145. [Downloadable!]
  5. Gajwani, Kiran & Kanbur, Ravi & Zhang, Xiaobo, 2006. "Comparing the evolution of spatial inequality in China and India: a fifty-year perspective," DSGD discussion papers 44, International Food Policy Research Institute (IFPRI). [Downloadable!]
  6. Klemick, Heather & Leonard, Kenneth L. & Masatu, Melkiory C., 2008. "Defining Access to Health Care: Evidence on the Importance of Quality and Distance in Rural Tanzania," Working Papers 6178, University of Maryland, Department of Agricultural and Resource Economics. [Downloadable!]
  7. Stephen Howes & Rinku Murgai & Marina Wes, 2004. "Expenditure Implications of India's State-level Fiscal Crisis," ASARC Working Papers 2004-15, Australian National University, Australia South Asia Research Centre. [Downloadable!]
  8. Mogues, Tewodaj & Ayele, Gezagehn & Paulos, Zelekawork & Fan, Shenggen, 2006. "How Effective is Public Spending? Public Investment Composition and Rural Welfare in Ethiopia," 2006 Annual meeting, July 23-26, Long Beach, CA 21258, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association). [Downloadable!]
  9. Gibson, John & Rozelle, Scott, 2002. "Poverty And Access To Infrastructure In Papua New Guinea," Working Papers 11944, University of California, Davis, Department of Agricultural and Resource Economics. [Downloadable!]
  10. Christiaensen, Luc & Demery, Lionel & Kuhl, Jesper, 2006. "The role of agriculture in poverty reduction an empirical perspective," Policy Research Working Paper Series 4013, The World Bank. [Downloadable!]
  11. Khandker, Shahidur R. & Bakht, Zaid & Koolwal, Gayatri B., 2006. "The poverty impact of rural roads : evidencefrom Bangladesh," Policy Research Working Paper Series 3875, The World Bank. [Downloadable!]
  12. Paul Mosley & Abrar Suleiman, 2005. "Aid, agriculture and poverty in developing countries," Working Papers 2005010, The University of Sheffield, Department of Economics, revised Jun 2005. [Downloadable!]
    Other versions:
  13. Peter Hazell, 2007. "Transformations in Agriculture and their Implications for Rural Development," The Electronic Journal of Agricultural and Development Economics, Food and Agriculture Organization of the United Nations, vol. 4(1), pages 47-65. [Downloadable!]
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