Advanced Search
MyIDEAS: Login to save this paper or follow this series

Government expenditures, social outcomes, and marginal productivity of agricultural inputs: a case study for Tanzania

Contents:

Author Info

  • Allen, Summer L.
  • Badiane, Ousmane
  • Ulimwengu, John M.

Abstract

In an effort to inform strategic options to improve agricultural productivity, we examine the impact of social service expenditures on the marginal productivity of agricultural inputs. Increasing agricultural productivity is often advocated as a way to reduce poverty, especially in sub-Saharan Africa, where many people still rely on agriculture as their main source of income. Unfortunately, limited national budgets are often focused on meeting short-term needs rather than on making longer-term, growth-enhancing investments in agriculture and rural areas. Using Tanzania as a case study, this research investigates the direct and indirect impacts of district-level health and education expenditures on marginal productivities of agricultural inputs through education and health outcomes. This approach uses recently-released data for Tanzania and health and education spending data as well as an innovative combination of approaches including a general covariance structure model and a mixed linear model to allow for district-level heterogeneity. Our results suggest a significant and nonlinear relationship between social outcomes and social expenditures and point to the importance of these outcomes in productivity. Marginal productivities of inputs are significant and confirm the validity of a heterogeneous technology approach. As expected, labor productivity, in particular, responds significantly to health and education outcomes. The findings also point to the importance of controlling for intra-country socioeconomic and agro-climatic heterogeneity.

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL: http://www.ifpri.org/sites/default/files/publications/ifpridp01172.pdf
Download Restriction: no

Bibliographic Info

Paper provided by International Food Policy Research Institute (IFPRI) in its series IFPRI discussion papers with number 1172.

as in new window
Length:
Date of creation: 2012
Date of revision:
Handle: RePEc:fpr:ifprid:1172

Contact details of provider:
Postal: 2033 K Street, NW, Washington, DC 20006
Phone: 202-862-5600
Fax: 202-467-4439
Email:
Web page: http://www.ifpri.org/
More information through EDIRC

Related research

Keywords: marginal productivity; social expenditure; state variables;

Other versions of this item:

This paper has been announced in the following NEP Reports:

References

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
as in new window
  1. Shenggen Fan & Xiaobo Zhang, 2008. "Public Expenditure, Growth and Poverty Reduction in Rural Uganda," African Development Review, African Development Bank, vol. 20(3), pages 466-496.
  2. Fulginiti, Lilyan E. & Perrin, Richard K., 1992. "Prices and Productivity in Agriculture," Staff General Research Papers 543, Iowa State University, Department of Economics.
  3. Benin, Samuel & Mogues, Tewodaj & Cudjoe, Godsway & Randriamamonjy, Josee, 2009. "Public expenditures and agricultural productivity growth in Ghana," 2009 Conference, August 16-22, 2009, Beijing, China 51634, International Association of Agricultural Economists.
  4. Dethier, Jean-Jacques & Effenberger, Alexandra, 2012. "Agriculture and development: A brief review of the literature," Economic Systems, Elsevier, vol. 36(2), pages 175-205.
  5. Matthew Cole & Eric Neumayer, 2006. "The impact of poor health on total factor productivity," Journal of Development Studies, Taylor & Francis Journals, vol. 42(6), pages 918-938.
  6. Maddison, David & Manley, Marita & Kurukulasuriya, Pradeep, 2007. "The impact of climate change on African agriculture : a ricardian approach," Policy Research Working Paper Series 4306, The World Bank.
  7. Ersado, Lire & Amacher, Gregory & Alwang, Jeffrey, 2003. "Productivity and land enhancing technologies in Northern Ethiopia: health, public investments, and sequential adoption," EPTD discussion papers 102, International Food Policy Research Institute (IFPRI).
  8. Shenggen Fan & Peter Hazell & Sukhadeo Thorat, 2000. "Government Spending, Growth and Poverty in Rural India," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 82(4), pages 1038-1051.
  9. Francis Teal, 2011. "Higher Education and Economic Development in Africa: A Review of Channels and Interactions -super-†," Journal of African Economies, Centre for the Study of African Economies (CSAE), vol. 20(suppl_3), pages -iii79, August.
  10. McNamara, Paul E. & Ulimwengu, John M. & Leonard, Kenneth L., 2010. "Do health investments improve agricultural productivity?," IFPRI discussion papers 1012, International Food Policy Research Institute (IFPRI).
  11. Robert E. Hall & Charles I. Jones, 1999. "Why Do Some Countries Produce So Much More Output per Worker than Others?," NBER Working Papers 6564, National Bureau of Economic Research, Inc.
  12. Mundlak, Yair & Butzer, Rita & Larson, Donald F., 2008. "Heterogeneous technology and panel data : the case of the agricultural production function," Policy Research Working Paper Series 4536, The World Bank.
  13. Pauw, Karl & Thurlow, James, 2010. "Agricultural growth, poverty, and nutrition in Tanzania:," IFPRI discussion papers 947, International Food Policy Research Institute (IFPRI).
  14. Fan, Shenngen & Hazell, Peter & Haque, T., 2000. "Targeting public investments by agro-ecological zone to achieve growth and poverty alleviation goals in rural India," Food Policy, Elsevier, vol. 25(4), pages 411-428, August.
  15. Adhvaryu, Achyuta R. & Beegle, Kathleen, 2009. "The long-run impacts of adult deaths on older household members in Tanzania," Policy Research Working Paper Series 5037, The World Bank.
  16. Gupta, Sanjeev & Verhoeven, Marijn & Tiongson, Erwin R., 2002. "The effectiveness of government spending on education and health care in developing and transition economies," European Journal of Political Economy, Elsevier, vol. 18(4), pages 717-737, November.
  17. Asenso-Okyere, Kwadwo & Asante, Felix A. & Tarekegn, Jifar & Andam, Kwaw S., 2009. "The linkages between agriculture and malaria: Issues for policy, research, and capacity strengthening," IFPRI discussion papers 861, International Food Policy Research Institute (IFPRI).
  18. Asenso-Okyere, Kwadwo & Chiang, Catherine & Thangata, Paul & Andam, Kwaw S., 2011. "Interactions between health and farm-labor productivity:," Food policy reports 23, International Food Policy Research Institute (IFPRI).
  19. Mundlak, Yair & Larson, Don & Butzer, Ritz, 1997. "The determinants of agricultural production : a cross-country analysis," Policy Research Working Paper Series 1827, The World Bank.
  20. Kalaitzandonakes, Nicholas G. & Dunn, Elizabeth G., 1995. "Technical Efficiency, Managerial Ability And Farmer Education In Guatemalan Corn Production: A Latent Variable Analysis," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 24(1), April.
  21. John Anyanwu & Andrew E. O. Erhijakpor, 2009. "Health Expenditures and Health Outcomes in Africa," African Development Review, African Development Bank, vol. 21(2), pages 400-433.
  22. Badiane, Ousmane & Ulimwengu, John, 2009. "The growth-poverty convergence agenda: Optimizing social expenditures to maximize their impact on agricultural labor productivity, growth, and poverty reduction in Africa," IFPRI discussion papers 906, International Food Policy Research Institute (IFPRI).
  23. John Anyanwu & Andrew E. O. Erhijakpor, 2007. "Working Paper 91 - Health Expenditures and Health Outcomes in Africa," Working Paper Series 226, African Development Bank.
  24. Fan, Shenggen & Zhang, Linxiu & Zhang, Xiaobo, 2002. "Growth, inequality, and poverty in rural China: the role of public investments," Research reports 125, International Food Policy Research Institute (IFPRI).
  25. Fan, Shenggen & Rao, Neetha, 2003. "Public spending in developing countries: trends, determination, and impact," EPTD discussion papers 99, International Food Policy Research Institute (IFPRI).
  26. Allcott, Hunt & Lederman, Daniel & Lopez, Ramon, 2006. "Political institutions, inequality, and agricultural growth : the public expenditure connection," Policy Research Working Paper Series 3902, The World Bank.
  27. Phillips, Joseph M. & Marble, Robert P., 1986. "Farmer education and efficiency: a frontier production function approach," Economics of Education Review, Elsevier, vol. 5(3), pages 257-264, June.
  28. Derek Headey & Mohammad Alauddin & D.S. Prasada Rao, 2010. "Explaining agricultural productivity growth: an international perspective," Agricultural Economics, International Association of Agricultural Economists, vol. 41(1), pages 1-14, 01.
Full references (including those not matched with items on IDEAS)

Citations

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:fpr:ifprid:1172. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ().

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.