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How Effective is Public Spending? Public Investment Composition and Rural Welfare in Ethiopia

  • Mogues, Tewodaj
  • Ayele, Gezahegn
  • Paulos, Zelekawork
  • Fan, Shenggen

One of the most important policy tools in developing countries for affecting economic growth and poverty reduction is expenditure policy. As governments decide how to allocate public spending, they need a clear understanding of how public investments translate into development outcomes. Using regional, zonal, and household-level data from Ethiopia, this paper analyses the relative returns, in terms of rural welfare, to different forms of public investment, including investment in agriculture, health, education, road infrastructure, and health.

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Paper provided by American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association) in its series 2006 Annual meeting, July 23-26, Long Beach, CA with number 21258.

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Date of creation: 2006
Date of revision:
Handle: RePEc:ags:aaea06:21258
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  1. John Matovu & Era Dabla-Norris, 2002. "Composition of Government Expenditures and Demand for Education in Developing Countries," IMF Working Papers 02/78, International Monetary Fund.
  2. Paul Collier & Stefan Dercon & John Mackinnon, 2002. "Density versus Quality in Health Care Provision: Using Household Data to Make Budgetary Choices in Ethiopia," World Bank Economic Review, World Bank Group, vol. 16(3), pages 425-448, December.
  3. Ersado, Lire & Amacher, Gregory S. & Alwang, Jeffrey Roger, 2003. "Productivity And Land Enhancing Technologies In Northern Ethiopia: Health, Public Investments, And Sequential Adoption," 2003 Annual meeting, July 27-30, Montreal, Canada 22223, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
  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. Fan, Shenggen & Zhang, Xiaobo & Rao, Neetha, 2004. "Public expenditure, growth, and poverty reduction in rural Uganda," DSGD discussion papers 4, International Food Policy Research Institute (IFPRI).
  6. Agenor, Pierre-Richard & Bayraktar, Nihal & El Aynaoui, Karim, 2005. "Roads out of poverty? assessing the links between aid, public investment, growth, and poverty reduction," Policy Research Working Paper Series 3490, The World Bank.
  7. 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.
  8. David Aschauer, 1998. "Public Capital and Economic Growth: Issues of Quantity, Finance, and Efficiency," Macroeconomics 9805016, EconWPA.
  9. 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).
  10. Wolde-Ghiorgis, W., 2002. "Renewable energy for rural development in Ethiopia: the case for new energy policies and institutional reform," Energy Policy, Elsevier, vol. 30(11-12), pages 1095-1105, September.
  11. Karuna Gomanee & Sourafel Girma & Oliver Morrissey, 2005. "Aid, public spending and human welfare: evidence from quantile regressions," Journal of International Development, John Wiley & Sons, Ltd., vol. 17(3), pages 299-309.
  12. Paternostro, Stefano & Rajaram, Anand & Tiongson, Erwin R., 2005. "How does the composition of public spending matter?," Policy Research Working Paper Series 3555, The World Bank.
  13. Ajwad, Mohamed Ihsan & Wodon, Quentin, 2007. "Do local Governments maximize access rates to public services across areas?: A test based on marginal benefit incidence analysis," The Quarterly Review of Economics and Finance, Elsevier, vol. 47(2), pages 242-260, May.
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