IDEAS home Printed from https://ideas.repec.org/p/idb/brikps/7839.html
   My bibliography  Save this paper

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
    as

    Download full text from publisher

    File URL: https://publications.iadb.org/publications/english/document/Public-Expenditures-and-the-Performance-of-Latin-American-and-Caribbean-Agriculture.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Giles Atkinson & Simon Dietz (ed.), 2007. "Handbook of Sustainable Development," Books, Edward Elgar Publishing, number 1818.
    2. Grossman, Gene M & Helpman, Elhanan, 1994. "Protection for Sale," American Economic Review, American Economic Association, vol. 84(4), pages 833-850, September.
    3. William Foster & Alberto Valdés & Benjamin Davis & Gustavo Anríquez, 2011. "The Constraints to Escaping Rural Poverty: An Analysis of the Complementarities of Assets in Developing Countries," Applied Economic Perspectives and Policy, Agricultural and Applied Economics Association, vol. 33(4), pages 528-565.
    4. Lederman, Daniel & Maloney, William F., 2003. "Research and development (R&D) and development," Policy Research Working Paper Series 3024, The World Bank.
    5. 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.
    6. Allcott, Hunt & Lederman, Daniel & Lopez, Ramon, 2006. "Political institutions, inequality, and agricultural growth : the public expenditure connection," Policy Research Working Paper Series 3902, The World Bank.
    7. 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).
    8. Alston, Julian M. & Marra, Michele C. & Pardey, Philip G. & Wyatt, T.J., 2000. "Research returns redux: a meta-analysis of the returns to agricultural R&D," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 44(2), pages 1-31.
    9. Fan, Shenggen & Hazell, P. B. R. & Thorat, Sukhadeo, 1999. "Linkages between government spending, growth, and poverty in rural India:," Research reports 110, International Food Policy Research Institute (IFPRI).
    10. De Gorter, Harry & Swinnen, Johan, 2002. "Political economy of agricultural policy," Handbook of Agricultural Economics, in: B. L. Gardner & G. C. Rausser (ed.), Handbook of Agricultural Economics, edition 1, volume 2, chapter 36, pages 1893-1943, Elsevier.
    11. Gerald M. Meier & Joseph E. Stiglitz, 2000. "Frontiers of Development Economics : The Future in Perspective," World Bank Publications - Books, The World Bank Group, number 13842, December.
    12. Lopez, Ramon & Galinato, Gregmar I., 2007. "Should governments stop subsidies to private goods? Evidence from rural Latin America," Journal of Public Economics, Elsevier, vol. 91(5-6), pages 1071-1094, June.
    13. Javier Escobal & Máximo Torero, 2005. "Measuring the Impact of Asset Complementarities: The Case of Rural Peru," Latin American Journal of Economics-formerly Cuadernos de Economía, Instituto de Economía. Pontificia Universidad Católica de Chile., vol. 42(125), pages 137-164.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Lucía Toledo & Gloria Salmoral & Oswaldo Viteri-Salazar, 2023. "Rethinking Agricultural Policy in Ecuador (1960–2020): Analysis Based on the Water–Energy–Food Security Nexus," Sustainability, MDPI, vol. 15(17), pages 1-22, August.
    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.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Gustavo Anríquez & William Foster & Jorge Ortega & César Falconi & Carmine Paolo De Salvo, 2016. "Public Expenditures and the Performance of Latin American and Caribbean Agriculture," IDB Publications (Working Papers) 95696, Inter-American Development Bank.
    2. Gustavo Anríquez & William Foster & Jorge Ortega, 2020. "Rural and agricultural subsidies in Latin America: Development costs of misallocated public resources," Development Policy Review, Overseas Development Institute, vol. 38(1), pages 140-158, January.
    3. Koffi Yovo, 2018. "Agriculture Public Expenditures and Growth: The Case of Togo," International Journal of Economics and Financial Research, Academic Research Publishing Group, vol. 4(1), pages 7-12, 01-2018.
    4. Manfred Wiebelt & Rainer Schweickert & Clemens Breisinger & Marcus Böhme, 2011. "Oil revenues for public investment in Africa: targeting urban or rural areas?," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 147(4), pages 745-770, November.
    5. Allen, Summer L. & Badiane, Ousmane & Ulimwengu, John M., 2012. "Government expenditures, social outcomes, and marginal productivity of agricultural inputs: a case study for Tanzania," IFPRI discussion papers 1172, International Food Policy Research Institute (IFPRI).
    6. Bulte, Erwin H. & Damania, Richard & Lopez, Ramon, 2007. "On the gains of committing to inefficiency: Corruption, deforestation and low land productivity in Latin America," Journal of Environmental Economics and Management, Elsevier, vol. 54(3), pages 277-295, November.
    7. Fatima, Amber & Shahbaz, Muhammad & Islam, Faridul, 2012. "Nexus of Trade, Investment and Poverty: Evidence from Pakistan," Bangladesh Development Studies, Bangladesh Institute of Development Studies (BIDS), vol. 35(2), pages 87-108, June.
    8. Rausser, Gordon C. & Roland, Gerard, 2009. "Special Interests versus the Public Interest in Policy Determination," Agricultural Distortions Working Paper Series 50294, World Bank.
    9. Renkow, Mitch, 2010. "Impacts of IFPRI's "priorities for pro-poor public investment" global research program:," Impact assessments 31, International Food Policy Research Institute (IFPRI).
    10. Haggblade, Steven, 2007. "Returns to Investment in Agriculture," Food Security Collaborative Policy Briefs 54625, Michigan State University, Department of Agricultural, Food, and Resource Economics.
    11. Chakraborty, Lekha, 2014. "Gender responsive budgeting, as fiscal innovation: Evidence from India on "Processes"," Working Papers 14/128, National Institute of Public Finance and Policy.
    12. 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).
    13. Narayanamoorthy, A. & Hanjra, Munir A., 2006. "Rural Infrastructure and Agricultural Output Linkages: A Study of 256 Indian Districts," Indian Journal of Agricultural Economics, Indian Society of Agricultural Economics, vol. 61(3), pages 1-16.
    14. Aaron Michael Shew & Alvaro Durand‐Morat & Lawton Lanier Nalley & Karen Ann‐Kuenzel Moldenhauer, 2018. "Estimating the benefits of public plant breeding: beyond profits," Agricultural Economics, International Association of Agricultural Economists, vol. 49(6), pages 753-764, November.
    15. Clas Eriksson, 2011. "Home bias in preferences and the political economics of agricultural protection," Review of Agricultural and Environmental Studies - Revue d'Etudes en Agriculture et Environnement, INRA Department of Economics, vol. 92(1), pages 5-23.
    16. Blanco Armas, Enrique & Gomez Osorio, Camilo & Moreno-Dodson, Blanca, 2010. "Agriculture Public Spending and Growth:The Example of Indonesia," World Bank - Economic Premise, The World Bank, issue 9, pages 1-4, April.
    17. Huang, Qiuqiong & Rozelle, Scott & Lohmar, Bryan & Huang, Jikun & Wang, Jinxia, 2006. "Irrigation, agricultural performance and poverty reduction in China," Food Policy, Elsevier, vol. 31(1), pages 30-52, February.
    18. Shenggen Fan & Connie Chan‐Kang & Keming Qian & K. Krishnaiah, 2005. "National and international agricultural research and rural poverty: the case of rice research in India and China," Agricultural Economics, International Association of Agricultural Economists, vol. 33(s3), pages 369-379, November.
    19. Yuan Li & Bo Xiong & John C Beghin, 2017. "The Political Economy of Food Standard Determination: International Evidence from Maximum Residue Limits," World Scientific Book Chapters, in: John Christopher Beghin (ed.), Nontariff Measures and International Trade, chapter 14, pages 239-267, World Scientific Publishing Co. Pte. Ltd..
    20. Bhattacharya, Rudrani & Sen Gupta, Abhijit & Sikdar, Satadru, 2020. "Building Infrastructure to Promote Inclusive Growth," Working Papers 20/321, National Institute of Public Finance and Policy.

    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

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:idb:brikps:7839. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Felipe Herrera Library (email available below). General contact details of provider: https://edirc.repec.org/data/iadbbus.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.