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Does Higher Government Spending Buy Better Results in Education and Health Care?

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  • Marijn Verhoeven
  • Sanjeev Gupta
  • Erwin Tiongson
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    Abstract

    There is little empirical evidence to support the claim that public spending improves education and health indicators. This paper uses cross-sectional data for 50 developing and transition countries to show that expenditure allocations within the two social sectors improve both access to and attainment in schools and reduce mortality rates for infants and children. The size and efficiency of these allocations are important for promoting equity and furthering second-generation reforms.

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    Bibliographic Info

    Paper provided by International Monetary Fund in its series IMF Working Papers with number 99/21.

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    Length: 25
    Date of creation: 01 Feb 1999
    Date of revision:
    Handle: RePEc:imf:imfwpa:99/21

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    Cited by:
    1. McGuire, James W., 2006. "Basic health care provision and under-5 mortality: A Cross-National study of developing Countries," World Development, Elsevier, vol. 34(3), pages 405-425, March.
    2. Simon Feeny & Mark Rogers, 2008. "Public sector efficiency, foreign aid and small island developing states," Journal of International Development, John Wiley & Sons, Ltd., vol. 20(4), pages 526-546.
    3. Altar, Moisa & Necula, Ciprian & Bobeica, Gabriel, 2008. "Modeling The Economic Growth In Romania. The Role Of Human Capital," Journal for Economic Forecasting, Institute for Economic Forecasting, vol. 5(3), pages 115-128, September.
    4. Jung, Hong-Sang & Thorbecke, Erik, 2003. "The impact of public education expenditure on human capital, growth, and poverty in Tanzania and Zambia: a general equilibrium approach," Journal of Policy Modeling, Elsevier, vol. 25(8), pages 701-725, November.
    5. John Scott, 2002. "High Inequality, Low Revenue: Redistributive Efficiency on Latin American Fiscal Policy in Comparative Perspective," IDB Publications 8907, Inter-American Development Bank.
    6. John Gafar, 2006. "The benefit-incidence of public spending: the Caribbean experience," Journal of International Development, John Wiley & Sons, Ltd., vol. 18(4), pages 449-468.
    7. Nadir Altinok, 2008. "Do school resources increase school quality ?," Brussels Economic Review, ULB -- Universite Libre de Bruxelles, vol. 51(4), pages 435-458.
    8. John Anyanwu & Andrew E. O. Erhijakpor, 2007. "Working Paper 91 - Health Expenditures and Health Outcomes in Africa," Working Paper Series 226, African Development Bank.
    9. Sonia Bhalotra, 2007. "Spending to Save? State Health Expenditure and Infant Mortality in India," The Centre for Market and Public Organisation 07/169, Department of Economics, University of Bristol, UK.
    10. Axel Dreher & Peter Nunnenkamp & Rainer Thiele, 2006. "Does Aid for Education Educate Children? Evidence from Panel Data," Kiel Working Papers 1290, Kiel Institute for the World Economy.
    11. Rosalind Levacic & Stephen Machin & David Reynolds & Anna Vignoles & James Walker, 2000. "The Relationship between Resource Allocation and Pupil Attainment: A Review," CEE Discussion Papers 0002, Centre for the Economics of Education, LSE.
    12. Erik Thorbecke & Hong-Sang Jung, 2001. "The Impact of Public Education Expenditureon Human Capital, Growth, and Poverty in Tanzania and Zambia," IMF Working Papers 01/106, International Monetary Fund.
    13. Deolalikar, Anil B. & Jamison, Dean T. & Laxminarayan, Ramanan, 2007. "India's Health Initiative: Financing Issues and Options," Discussion Papers dp-07-48, Resources For the Future.
    14. Anwar, Mumtaz & Rashid, Muhammad Khalid, 2011. "Effectiveness of foreign aid in the light of millennium development goal on the health sector: a case study of Pakistan," MPRA Paper 37142, University Library of Munich, Germany.
    15. Rajkumar, Andrew Sunil & Swaroop, Vinaya, 2002. "Public spending and outcomes : does governance matter?," Policy Research Working Paper Series 2840, The World Bank.
    16. Nadir Altinok, 2006. "Les sources de la qualité de l'éducation," Post-Print halshs-00095018, HAL.
    17. International Monetary Fund, 2005. "Trinidad and tobago," IMF Working Papers 05/197, International Monetary Fund.
    18. Paulo Silva Lopes, 2002. "A Comparative Analysis of Government Social Spending Indicators and their Correlation with Social Outcomes in Sub-Saharan Africa," IMF Working Papers 02/176, International Monetary Fund.
    19. Gupta, Sanjeev & Verhoeven, Marijn, 2001. "The efficiency of government expenditure: experiences from Africa," Journal of Policy Modeling, Elsevier, vol. 23(4), pages 433-467, May.

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