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Public Spending and Poverty in Mozambique

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  • Heltberg, Rasmus
  • Simler, Kenneth
  • Tarp, Finn

Abstract

"Poverty reduction strategies often highlight public spending to improve health and education, focusing on investments in human capital among poorer members of society. In addition, debt relief programs such as the enhanced Highly Indebted Poor Countries (HIPC) initiative often require increased spending on health and education in return for debt cancellation. Mozambique's poverty reduction strategy is closely integrated with the government expenditure program, yet up to now little is known about the extent to which public spending is targeted toward the poor in Mozambique. This paper assesses whether public expenditures on education and health are successful at reaching the poorer segments of the Mozambican population. Standard nonbehavioral benefit-incidence methodology is applied, combining individual client information from survey data with provincial-level data on the cost of service provision. Most of the public services we are able to measure are moderately progressive, although some of the instruments we could not measure are probably less equally distributed. In Mozambique, it appears that regional and gender imbalances in health and education are more significant than income-based differences. Nevertheless, increased public expenditures on health and education such as that related to the HIPC initiative are likely to have significant poverty-reducing effects." Author's Abstract

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File URL: http://www.wider.unu.edu/stc/repec/pdfs/dp2001/dp2001-63.pdf
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Bibliographic Info

Paper provided by World Institute for Development Economic Research (UNU-WIDER) in its series Working Paper Series with number UNU-WIDER Research Paper DP2001/63.

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Length: 32 pages
Date of creation: 2001
Date of revision:
Handle: RePEc:unu:wpaper:dp2001-63

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Keywords: Government expenditure; Poverty and inequality; Mozambique;

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References

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  1. Handa, Sudhanshu & Simler, Kenneth R. & Harrower, Sarah, 2004. "Human capital, household welfare, and children's schooling in Mozambique:," Research reports 134, International Food Policy Research Institute (IFPRI).
  2. Haddad, Lawrence James & Adato, Michelle, 2001. "How effectively do public works programs transfer benefits to the poor?," FCND briefs 108, International Food Policy Research Institute (IFPRI).
  3. Heltberg, Rasmus & Tarp, Finn, 2001. "Agricultural Supply Response and Poverty in Mozambique," Working Paper Series UNU-WIDER Research Paper , World Institute for Development Economic Research (UNU-WIDER).
  4. Tarp, Finn & Arndt, Channing & Jensen, Henning Tarp & Robinson, Sherman & Heltberg, Rasmus, 2002. "Facing the development challenge in Mozambique: an economywide perspective," Research reports 126, International Food Policy Research Institute (IFPRI).
  5. Lanjouw, Peter & Ravallion, Martin, 1999. "Benefit Incidence, Public Spending Reforms, and the Timing of Program Capture," World Bank Economic Review, World Bank Group, vol. 13(2), pages 257-73, May.
  6. C. Arndt & H. T. Jensen & S. Robinson & F. Tarp, 2000. "Marketing Margins and Agricultural Technology in Mozambique," Journal of Development Studies, Taylor & Francis Journals, vol. 37(1), pages 121-137.
  7. Sahn, David E & Younger, Stephen D & Simler, Kenneth R, 2000. "Dominance Testing of Transfers in Romania," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 46(3), pages 309-27, September.
  8. Addison, Tony & Murshed, S. Mansoob, 2001. "The Fiscal Dimensions of Conflict and Reconstruction," Working Paper Series UNU-WIDER Research Paper , World Institute for Development Economic Research (UNU-WIDER).
  9. Datt, Gaurav & Simler, Kenneth & Mukherjee, Sanjukta & Dava, Gabriel, 2000. "Determinants of poverty in Mozambique (1996-97)," FCND discussion papers 78, International Food Policy Research Institute (IFPRI).
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Citations

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Cited by:
  1. World Bank, 2004. "Skills Development in Mozambique : Issues and Options," World Bank Other Operational Studies 14366, The World Bank.
  2. World Bank, 2008. "Mozambique - Beating the Odds : Sustaining Inclusion in a Growing Economy - A Mozambique Poverty, Gender, and Social Assessment, Volume 1. Main Report," World Bank Other Operational Studies 7981, The World Bank.
  3. Magnus Lindelow, 2003. "The Utilization of Curative Health Care in Mozambique: Does Income Matter?," Economics Series Working Papers WPS/2004-11, University of Oxford, Department of Economics.
  4. Stewart, Frances, 2006. "Policies towards Horizontal Inequalities in Post-Conflict Reconstruction," Working Paper Series RP2006/149, World Institute for Development Economic Research (UNU-WIDER).
  5. Zahid Asghar & Mudassar Zahra, 2012. "A Benefit Incidence Analysisof Public Spending on Education in PakistanUsing PSLM Data," Lahore Journal of Economics, Department of Economics, The Lahore School of Economics, vol. 17(2), pages 111-136, July-Dec.
  6. Gomanee, Karuna & Morrissey, Oliver & Mosley, Paul & Verschoor, Arjan, 2005. "Aid, Government Expenditure, and Aggregate Welfare," World Development, Elsevier, vol. 33(3), pages 355-370, March.
  7. Channing Arndt & Sam Jones & Finn Tarp, 2006. "Aid and Development: The Mozambican Case," Discussion Papers 06-13, University of Copenhagen. Department of Economics.
  8. McKay, Andrew, 2002. "Assessing the Impact of Fiscal Policy on Poverty," Working Paper Series UNU-WIDER Research Paper , World Institute for Development Economic Research (UNU-WIDER).
  9. Lindelow, Magnus, 2004. "Sometimes more equal than others : how health inequalities depend on the choice of welfare indicator," Policy Research Working Paper Series 3329, The World Bank.
  10. Magnus Lindelow, 2004. "Sometimes More Equal than Others How the choice of welfare indicator can affect the measurement of health inequalities and the incidence of public spending," Development and Comp Systems 0409018, EconWPA.
  11. Magnus Lindelow, 2002. "Sometimes More Equal than Others How the choice of welfare indicator can affect the measurement of health inequalities and the incidence of public spending," Economics Series Working Papers WPS/2002-15, University of Oxford, Department of Economics.
  12. Magnus Lindelow, 2004. "The Utilization of Curative Health Care in Mozambique: Does Income Matter?," Development and Comp Systems 0409057, EconWPA.
  13. Jindal, Rohit & Kerr, John M. & Carter, Sarah, 2012. "Reducing Poverty Through Carbon Forestry? Impacts of the N’hambita Community Carbon Project in Mozambique," World Development, Elsevier, vol. 40(10), pages 2123-2135.
  14. Magnus Lindelow, 2006. "Sometimes more equal than others: how health inequalities depend on the choice of welfare indicator," Health Economics, John Wiley & Sons, Ltd., vol. 15(3), pages 263-279.

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