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Effect of the Structure of Rural Public Expenditures on Agricultural Growth and Rural Poverty in Latin America

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Author Info

  • Ramón López

Abstract

This working paper empirically documents the size of (2) in the rural sector and investigates its consequences for rural development (agricultural growth, patterns of growth and rural poverty) for ten Latin American countries over 1985-2000. The paper provides econometric evidence suggesting that the structure of public expenditures is an important factor of economic development. The quantitative importance of this factor appears to be greater than the traditional factors on which the development literature focuses. In particular, expanding total public expenditures in rural areas while maintaining the existing public expenditure composition prevailing in the countries does little to promote agricultural income and reduce rural poverty.

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File URL: http://idbdocs.iadb.org/wsdocs/getdocument.aspx?docnum=1481951
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Bibliographic Info

Paper provided by Inter-American Development Bank in its series IDB Publications with number 50958.

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Date of creation: Dec 2004
Date of revision:
Handle: RePEc:idb:brikps:50958

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Related research

Keywords: Poverty; Fiscal Policy; Economic Development & Growth; Agricultural policy; Rural development; Agricultural trade & marketing; structure of public expenditures; rural areas; rural poverty; agricultural growth; Latin America;

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Cited by:
  1. Chemingui, Mohamed Abdelbasset, 2007. "Public spending and poverty reduction in an oil-based economy: The case of Yemen," IFPRI discussion papers 701, International Food Policy Research Institute (IFPRI).
  2. Mark D. Wenner, 2005. "Agricultural Insurance Revisited: New Developments and Perspectives in Latin America and the Caribbean," IDB Publications 36838, Inter-American Development Bank.
  3. Osorio, Camilo Gomez & Abriningrum, Dwi Endah & Armas, Enrique Blanco & Firdaus, Muhammad, 2011. "Who is benefiting from fertilizer subsidies in Indonesia ?," Policy Research Working Paper Series 5758, The World Bank.

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