scholarly journals Public Expenditure on Agriculture and its Impact

2019 ◽  
pp. 170-209
Author(s):  
Samuel Benin
Keyword(s):  
Public Investment ◽  
Public Spending ◽  
Rural Roads ◽  
Agricultural Growth ◽  
Public Investments ◽  
The Government ◽  
Econometric Analyses ◽  
Marginal Returns ◽  
Food Staples ◽  
The Impact

This chapter examines trends in public agricultural spending between 1961 and 2012 and disaggregates that spending into the cocoa and noncocoa sectors. The majority of total spending has gone into the cocoa subsector, while the noncocoa subsector, which includes all the country’s food staples, has been neglected. The government’s public spending on agriculture has fallen short of 10 percent of its total expenditure in most years since 1961, and in recent times the share has averaged only 2 to 3 percent, which is low even by African standards. The government has also spent relatively little on complementary investments in rural roads and other essential rural infrastructure. Econometric analyses then estimate the impact of public spending on agricultural productivity growth, insights into the marginal returns to public investments in the cocoa and noncocoa subsectors, and by type of public investment. This is followed by a discussion of some of the government’s recent attempts to promote noncocoa agricultural growth through several new subsidy and investment programs.

scholarly journals Education and Poverty in Morocco: A Computable General Equilibrium Micro-simulation Analysis

2020 ◽  
Vol 6 (1) ◽  
pp. p116
Author(s):  
Mohamed KARIM ◽  
Mohamed EL MOUSSAOUI
Keyword(s):  
Higher Education ◽  
General Equilibrium ◽  
Computable General Equilibrium ◽  
Simulation Analysis ◽  
Public Investment ◽  
Unit Cost ◽  
Public Spending ◽  
Micro Simulation ◽  
The Government ◽  
The Impact

The paper uses a micro-simulation computable general equilibrium model (CGE) to analyze the impact on poverty of public spending in higher education in Morocco. The model incorporates 7062 households derived from the 2007 National Survey on Household Living Standards (ENNVM). Two scenarios are simulated: a 100% reduction in the unit cost of higher education supported by households and a 50% reduction in public spending on higher education. In this study, it is assumed that the investment behavior of households is linked to the share of the unit cost financed by the government in higher education. The results show that the policy of exempting households from bearing any unit cost of higher education encourages them to invest massively in education, which leads to increasing their income and consequently improving welfare and reducing poverty and inequalities. On the other hand, the reduction in public investment in higher education affects negatively the behavior of households to invest in education which leads to a decrease in welfare, an increase in poverty and a rise of inequalities.

scholarly journals The Impact of Government Spending On Economic Growth in Kazakhstan and Kyrgyzstan

2017 ◽  
Author(s):  
Serhat Atmaca ◽  
Metin Bayrak
Keyword(s):  
Economic Growth ◽  
Government Spending ◽  
Public Investment ◽  
Public Spending ◽  
Public Expenditures ◽  
Economic Policies ◽  
Positive Effects ◽  
Average Group ◽  
The Government ◽  
The Impact

The realization of economic growth in order to grow and develop an economy and increase social welfare is one of the basic aims of every society. For this reason, states are making great efforts to realize economic growth and make it sustainable. In this context, the impact of public expenditure on the economic growth of countries is a matter of research. Government spending can be classified economically as expenditure on capital and current expenditures, functionally as general public services, defense services, education services, public order and security services, economic affairs and services, environmental protection services, health services and other services. There are also investment expenditures made by the government for economic development. In particular, public investment expenditures complementary to private investments have positive effects on growth. The Kazakhstan and Kyrgyzstan economies, which are in the category of developing countries, are looking for ways to achieve development and growth and are implementing various practices and economic policies in this process. In this context, Kazakhstan and Kyrgyzstan have the main purpose of studying and analyzing the effects of the public expenditures that they think will be effective on economic growth. The various variables of public spending in the study were examined with the Karma Average Group (PMG) model, which shows how Kazakhstan and Kyrgyzstan's growth affected their growth in the short and long term. As a result, public spending has been influenced by economic growth and it has been determined which components are active on a country basis.

scholarly journals The Risk of Long-Term Financing of Public Investments

2019 ◽  
Vol 2 (2) ◽  
pp. 42
Author(s):  
Krzysztof Jarosiński ◽  
Benedykt Opałka
Keyword(s):  
Public Debt ◽  
Negative Impact ◽  
Capital Expenditure ◽  
Public Investment ◽  
Point Of View ◽  
Risk Category ◽  
Investment Projects ◽  
The Public ◽  
Public Investments ◽  
The Impact

The risk of financing of public investments is a phenomenon that accompanies development processes in a permanent manner. Investments in the public sector are generally characterized by relatively long implementation cycles and involve significant capital expenditure and the necessity of often parallel running a large number of investment projects. In the processes of this type of investment a specific risk category of financing of this type of investment is quite often taken into account, given that such projects are financed mainly from budgetary resources: the state budget and self-government budgets. Economic practice indicates an importance of the proper selection of the method of the financing of new investments and taking into account new funds from various sources. This situation is often the result of a shortage of budgetary resources from which public investments could be financed. There may be difficulties in financing investments resulting from the emergence of a risk of budgetary deficit and the public debt. This risk may have a negative impact on investment decisions and may adversely affect the future course of ongoing investment projects. The purpose of the paper is to undertake studies on the conditions of financing investments from the point of view of the possibility of budget deficit and public debt and the impact of changes in the financial situation on the overall level of risk of public investment. The text is an invitation to undertake a broader discussion on financing public investments in conditions of limited public financial resources.

scholarly journals Effectiveness of Public Spending before and during COVID-19 Pandemic

2022 ◽  
pp. 42-49
Author(s):  
Kamelia Assenova
Keyword(s):  
Social Insurance ◽  
Aggregate Demand ◽  
Public Spending ◽  
Coefficient Of Determination ◽  
Strong Impact ◽  
Labor Costs ◽  
Negative Results ◽  
Capital Spending ◽  
The Government ◽  
The Impact

The pandemic of COVID-19 influences all sectors of the economy. It caused decreasing in produced Gross domestic product (GDP) and higher unemployment. As it is known, to overcome this negative tendency, it is possible to put in practice monetary and fiscal instruments. During the pandemic, the government tried to slow down negative economic results through public spending. With them, the government looks to be increased aggregate demand in the economy and as a result-GDP raises and unemployment reduces. The research is based on created original model for testing the impact of total public spending, capital, salary, social insurance and care, for maintenance by a consolidated fiscal program on the value of GDP. The changes of GDP measure the effectiveness of public spending. The period of research is before and during the COVID-19 crisis (2019-2020) in the case of Bulgaria. Before the pandemic the analysis shows coefficient of determination for capital spending is more significant compare with all other types of public expenditure and these cost predetermine economic growth. During the pandemic of COVID-19 public spending has used as the main instrument to overcome the negative results for the economy. For this period it found an extremely strong impact of labor costs and social care expenditure on aggregate demand. They bring more positive results to be solved health issues, but not for faster recovery of the economy.

Thailand’s democratic deficit will dampen GDP growth

2018 ◽  
Keyword(s):  
Public Spending ◽  
Gdp Growth ◽  
Democratic Deficit ◽  
National Strategy ◽  
Consumer Spending ◽  
Short Term ◽  
Domestic Activity ◽  
Content Type ◽  
The Government ◽  
The Impact

Subject Outlook for the Thai economy. Significance Thailand's GDP grew by 3.9% last year, the most since 2012, and is expected to remain at around 4.0% this year, with stronger public spending supporting surging tourism and solid consumer spending. Thailand’s National Strategy aims to raise GDP growth to 5-6%, but this ambition faces rising short-term risks and longer-term structural impediments. Impacts Despite rising pressure on the government to hold elections, protests will not grow, limiting the impact on spending and tourism. Automobiles, semiconductors and other electronics -- key Thai exports -- will be hit by deteriorating US-China relations. The Bank of Thailand is one South-east Asian central bank keen to ‘normalise’ rates, but higher rates could dampen domestic activity.

Does government expenditure reduce unemployment in Egypt?

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Hanan AbdelKhalik Abouelfarag ◽  
Rasha Qutb
Keyword(s):  
Unemployment Rate ◽  
Government Expenditure ◽  
Vital Role ◽  
Content Type ◽  
Vector Error Correction ◽  
Public Investments ◽  
Long Run ◽  
Johansen Cointegration Test ◽  
The Government ◽  
The Impact

PurposeThis research seeks to empirically examine the impact of government expenditure on the unemployment rate in Egypt during the period of 1980–2017. In addition, it examines whether the distinction between discretionary and nondiscretionary items of government expenditure have a different effect on unemployment.Design/methodology/approachThe study employs the Johansen cointegration test to ensure the long-run equilibrium relationship among the variables, then the vector error correction model (VECM) to explore the dynamic short and long-run effects.FindingsThe empirical results of this research reveal that increasing government expenditure causes an increase in the unemployment rate in the long-run. Both discretionary expenditures and nondiscretionary expenditures increase the growth of unemployment by approximately the same coefficient. The worsening impact of discretionary expenditures on unemployment is highly attributed to the compensation of employees and the government subsidies. Investment expenditure has an insignificant effect because of its minor percentage in government expenses.Practical implicationsRedirecting the unnecessary expenditures toward labor-intensive public investments is recommended, in addition to reducing domestic and foreign debts. The government has to work hard to increase the economic growth rate, as it has a vital role in reducing unemployment.Originality/valueThis study is one of the first attempts to analyze the effect of government expenditure on the unemployment rate in Egypt. Moreover, this research distinguishes between the effects related to discretionary and nondiscretionary items of government expenditure.

Quantifying the Impact of Development of the Transport Sector in Pakistan

2007 ◽  
Vol 46 (4II) ◽  
pp. 779-802 ◽  
Author(s):  
Rizwana Siddiqui
Keyword(s):  
Computable General Equilibrium ◽  
Public Investment ◽  
Road Transport ◽  
Transport Infrastructure ◽  
Transport Sector ◽  
Transport Services ◽  
Long Run ◽  
The Government ◽  
The Cost ◽  
The Impact

An efficient transport system is not only a pre-requisite for economic development but is also important to achieve the objective of economic integration in the world economy. Insufficient transport infrastructure results in congestion, delay delivery time, fuel waste, pollution and accident1 which built inefficiencies in the economy and costs the economy 4 to 6 percent of GDP each year [Shah (2006)and World Bank (2007)], which can be saved by investing in transport services. Realising its importance, the government of Pakistan has initiated National Trade Corridor Improvement Programme (NTCIP) in 2005 to improve logistic and transport infrastructure so that it can fulfill the demand of economy more efficiently. This five years programme includes all sectors that improve performance of corridor-high way namely, road transport, railways, airports, and ships etc. The objective of the programme is to reduce the cost of doing business and improve quality of services. The study quantifies the efficiency of transport sector by evaluating the impact of public investment to improve transport services on the economy in general and on cost of land transportation in particular; i.e., cost of freight and passenger movement and cost of externalities such as congestion, air pollution and accident. The outcome of the study depends on how improved facility is achieved, i.e., who bears the cost and who benefits etc. This paper assumes tax financed public investment that not only change domestic price and demand, but also welfare and poverty. The issue is analysed in computable general equilibrium framework taking into account inter linkages of transport sector with rest of the economy. First, a social accounting matrix (SAM) is developed with a detailed transport module. Then, a dynamic CGE model is developed around this SAM and simulations are conducted for short run and long run analysis of public investment in trans port sector.

E-Government Adoption and Agricultural Extension Services Facilitate and Growth in ASEAN Region

2020 ◽  
pp. 39-46
Author(s):  
Karuna moorthy ◽  
Andreas Kalman
Keyword(s):  
Agricultural Sector ◽  
Control Variable ◽  
Agricultural Extension ◽  
Extension Services ◽  
Literacy Rate ◽  
Review Section ◽  
Agricultural Growth ◽  
Asean Countries ◽  
The Government ◽  
The Impact

E-government is the employment of latest technologies and innovative practices in the services offered by the government and other information management systems to increase transparency and efficiency of these services. Agricultural extension services involve all the new and latest technologies related to the agricultural sector of a country. Agricultural sector is important for any country as most of the people are associated with this sector. This research studies the impact of e-government adoption and agricultural extension services on agricultural growth in ASEAN countries. In addition to these variables, two control variables i.e. literacy rate and population have also been used. The studies from the past research have been discussed in literature review section of this paper. To conduct research, data about the above-mentioned variables has been collected from ASEAN countries consisting of 28 years. After using several techniques and approaches, one of the two major hypotheses of this study is accepted along with the impact of a control variable, literacy rate. However, the other major hypothesis and the impact of other control variable i.e. population is rejected. This study has various theoretical, practical and policy making implications to increase agricultural growth.

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