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Farmers’ Social Expenditures and Agricultural Productivity A state variables approach

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  • Ulimwengu, J.
  • Makombe, T.

Abstract

With increasingly large shares of public expenditures going toward social sectors in agriculture-based economies, the issue becomes how to design a budget allocation scheme that maximizes agricultural productivity-enhancing effects of social expenditures. This study examines the impact of various subtypes of household health spending on agricultural labor productivity using data from 505 households in five Rwandan districts. Our findings confirm that change in agricultural productivity can be driven by change in marginal productivity of inputs induced by households’ health status. The latter are significantly impacted by households’ own social expenditures. This then suggests that there is a way to bundle social expenditures in order to compensate for the shortage of resources allocated to agriculture and therefore to harness their productivity-enhancing potential.

Suggested Citation

  • Ulimwengu, J. & Makombe, T., 2018. "Farmers’ Social Expenditures and Agricultural Productivity A state variables approach," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 276000, International Association of Agricultural Economists.
    • Handle: RePEc:ags:iaae18:276000
    DOI: 10.22004/ag.econ.276000
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    References listed on IDEAS

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    1. McNamara, Paul E. & Ulimwengu, John M. & Leonard, Kenneth L., 2010. "Do health investments improve agricultural productivity? Lessons from agricultural household and health research," IFPRI discussion papers 1012, International Food Policy Research Institute (IFPRI).
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