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Political institutions, inequality, and agricultural growth : the public expenditure connection

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  • Allcott, Hunt
  • Lederman, Daniel
  • Lopez, Ramon

Abstract

This paper brings together the literatures on the political economy of public expenditures and the determinants of economic growth. Based on a new dataset of rural public expenditures in a panel of Latin American economies, the econometric evidence suggests that non-social subsidies reduce agricultural GDP. Furthermore, the evidence suggests that political and institutional factors as well as income inequality are determinants of the size and structure of rural public expenditures, through which they have large and significant effects on agricultural GDP.

Suggested Citation

  • 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.
    • Handle: RePEc:wbk:wbrwps:3902
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    Cited by:

    1. Bezemer, Dirk & Headey, Derek, 2008. "Agriculture, Development, and Urban Bias," World Development, Elsevier, vol. 36(8), pages 1342-1364, August.
    2. 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.
    3. Rausser, Gordon C. & Roland, Gerard, 2008. "Special Interests Versus the Public Interest: The Determination of Policy Instruments," Department of Economics, Working Paper Series qt9x85q919, Department of Economics, Institute for Business and Economic Research, UC Berkeley.
    4. Díaz-Bonilla, Eugenio & Thomas, Marcelle, 2016. "Why some are more equal than others: Country typologies of food security:," IFPRI discussion papers 1510, International Food Policy Research Institute (IFPRI).
    5. 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.
    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. Díaz-Bonilla, Eugenio, 2016. "Volatile volatility: Conceptual and measurement issues related to price trends and volatility:," IFPRI discussion papers 1505, International Food Policy Research Institute (IFPRI).
    8. Monterroso-Rivas, Ottoniel, 2008. "Institutions and public policies for rural development in Guatemala," Revista CEPAL, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), August.
    9. Ragasa, Catherine & Mazunda, John, 2018. "The impact of agricultural extension services in the context of a heavily subsidized input system: The case of Malawi," World Development, Elsevier, vol. 105(C), pages 25-47.
    10. 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.
    11. 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.
    12. 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).
    13. Rausser, Gordon C. & Roland, Gerard, 2009. "Special Interests versus the Public Interest in Policy Determination," Agricultural Distortions Working Paper Series 50294, World Bank.
    14. Armas, Enrique Blanco & Osorio, Camilo Gomez & Moreno-Dodson, Blanca & Abriningrum, Dwi Endah, 2012. "Agriculture public spending and growth in Indonesia," Policy Research Working Paper Series 5977, The World Bank.
    15. Ramón López, 2007. "Fiscal policies in highly unequal societies: implications for agricultural growth," The Electronic Journal of Agricultural and Development Economics, Food and Agriculture Organization of the United Nations, vol. 4(1), pages 123-145.
    16. World Bank, 2010. "Indonesia : Agriculture Public Expenditure Review 2010," World Bank Publications - Reports 13069, The World Bank Group.

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    Keywords

    Public Sector Expenditure Analysis&Management; Economic Theory&Research; Public Sector Economics&Finance; Political Economy; Achieving Shared Growth;
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