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Public Expenditures and the Performance of Latin American and Caribbean Agriculture

Author

Listed:
  • Anríquez, Gustavo
  • Foster, William
  • Ortega, Jorge
  • Falconi, César
  • De Salvo, Carmine Paolo

Abstract

Economic theory and econometric evidence support the thesis that the displacement of government expenditures on public goods by subsidies to private goods inhibits the performance of the farm sector. This paper presents an analysis of the influence of the mix of expenditures related to agriculture on net income generation, using data for 19 Latin American and Caribbean countries during 1985-2012. The econometric results demonstrate that total government spending on the farm sector positively impacts agriculture's performance. More importantly, and of greater practical economic significance, increasing the share of expenditures committed to public goods, ceteris paribus, would significantly raise rural income as measured by sector value added per capita of the rural population.

Suggested Citation

  • Anríquez, Gustavo & Foster, William & Ortega, Jorge & Falconi, César & De Salvo, Carmine Paolo, 2016. "Public Expenditures and the Performance of Latin American and Caribbean Agriculture," IDB Publications (Working Papers) 7839, Inter-American Development Bank.
    • Handle: RePEc:idb:brikps:7839
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    References listed on IDEAS

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    Cited by:

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    2. Olga V. Shik, 2020. "Public expenditure for agricultural sector in Russia: Does it promote growth?," Russian Journal of Economics, ARPHA Platform, vol. 6(1), pages 42-55, March.
    3. Шик О. В. & Серова Е. В. & Янбых Р. Г., 2020. "Исследование Системы Бюджетной Поддержки Аграрного Сектора В России," Вопросы государственного и муниципального управления // Public administration issues, НИУ ВШЭ, issue 2, pages 145-167.

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    More about this item

    Keywords

    gasto público; government spending; gasto agrícola; government agricultural policy; agricultural spending;
    All these keywords.

    JEL classification:

    • H50 - Public Economics - - National Government Expenditures and Related Policies - - - General
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy; Animal Welfare Policy
    • Q16 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - R&D; Agricultural Technology; Biofuels; Agricultural Extension Services
    • Q17 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agriculture in International Trade

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