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Comparative Sectoral Efficiency in the Fight Against Poverty and Unemployment in Burkina Faso

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  • Patrice Relouende Zidouemba

Abstract

In this paper, we construct an economy-wide recursive dynamic model for Burkina Faso to explore the impact of scaling up public capital in different aggregate sectors. While several researchers emphasize the importance for sub-Saharan African countries of giving higher priority to agriculture to stimulate economic growth and reduce poverty, some authors state that non-agricultural sectors should now receive special attention following the success achieved in some countries in South Asia. These countries have indeed applied a different paradigm: a program of economic growth and poverty reduction based on non-agricultural sectors. This study aims to provide insights into this debate. It draws from the public capital productivity literature to postulate the positive productive externalities of public investment. The results show that, with the same amount of public investment, financed by the same source, public investment in agriculture yields positive impacts that are significantly higher than those yielded by investments in non-agricultural sectors (industry and services). Added value growth in non-agricultural sectors is higher under public investment in agriculture than in non-agricultural sectors.

Suggested Citation

  • Patrice Relouende Zidouemba, 2018. "Comparative Sectoral Efficiency in the Fight Against Poverty and Unemployment in Burkina Faso," Applied Economics and Finance, Redfame publishing, vol. 5(2), pages 185-200, March.
    • Handle: RePEc:rfa:aefjnl:v:5:y:2018:i:2:p:185-200
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    More about this item

    Keywords

    poverty; unemployment; public investment; computable general equilibrium;
    All these keywords.

    JEL classification:

    • R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General
    • Z0 - Other Special Topics - - General

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