scholarly journals The Impact of Intergovernmental Transfers on Education Outcomes and Poverty Reduction

2013 ◽  
Vol 5 (4) ◽  
pp. 206-240 ◽  
Author(s):  
Stephan Litschig ◽  
Kevin M Morrison

This paper provides regression discontinuity evidence on development impacts of intergovernmental transfers. Extra transfers in Brazil increased local government spending per capita by about 20 percent over a 4 year period with no evidence of crowding out own revenue or other revenue sources. Schooling per capita increased by about 7 percent and literacy rates by about 4 percentage points. In line with the effect on human capital, the poverty rate was reduced by about 4 percentage points. Somewhat noisier results also suggest that the reelection probability of local incumbent parties in the 1988 elections improved by about 10 percentage points. (JEL H72, H75, I21, I28, I32, I38, O15)

Author(s):  
Sherine Fathy Mansour ◽  
Dalia Elsaid Abozaid

This study examines the impact of New Integrated Management Package (IMP) adoption on income and poverty among fodder farming household in Sahl El-Tina. The IMP such as Rate, time, and methods of nitrogen fertilization and other fertilization, Leaching requirements for some crops, Intercropping system, Use of suitable crop genotype/variety, Use of modern irrigation systems or modified systems to save water, date, rate and method of planting. The study aims mainly to improve the lives of small farmers through the level of dissemination and application of cultivation techniques forage crops tolerant to salinity through develop and disseminate technologies packages of forage production. And reducing their probability of falling below the poverty line. Therefore suggest that intensification of the investment on IMP dissemination is a reasonable policy instrument to raise incomes and reduce poverty among fodder farming household. It used instrumental variables (IV)-based estimator to estimate the Local Average Treatment Effect (LATE) of adoption of IMP on income and poverty reduction, using cross-sectional data of 200 farmers from Shal El-Tina. The findings reveal a robust positive and significant impact of IMP adoption on farm household income and welfare measured by per capita expenditure and poverty reduction. Specifically, the empirical results suggest that adoption of IMP raises household per capita expenditure and income by an average of 529.27$ and 1371$ in Shal El-Tina per cropping season respectively, thereby reducing their probability of falling below the poverty line. Therefore suggest that intensification of the investment on IMP dissemination is a reasonable policy instrument to raise incomes and reduce poverty among fodder farming household, although complementary measures are also needed. The incidence of poverty was higher among non-IMP adopters (55.2%) than IMP adopters (49.5%). In addition, both the depth and severity of poverty were also higher (20.85% and 15.42%) among non-adopters than the adopters (18.48% and 9.88%). All three poverty measures indicate that poverty was more prevalent and severe among non-adopters compared to adopters.


Author(s):  
Hai-Anh H. Dang ◽  
Peter Lanjouw

India in the early years of the twenty-first century achieved per capita growth rates that were historically unprecedented. Poverty reduction also accelerated. There is concern, however, that this growth was accompanied by a rise in inequality. In this chapter, we report on a research project that examines inequality trends and dynamics at the all-India level over three decades up to 2011/12 and contrasts these with evidence at the level of the village or the urban block. We further unpack inequality to explore dynamics in terms of the movement of people within the income distribution over time. The assessment of mobility is informed both by evidence at the very local level, and by aggregate, national-level trends. The study attempts, further, to assess horizontal inequalities into a measure of inequality of opportunity as captured by inter-generational mobility in education outcomes.


Author(s):  
Reni Putri Nurhidayati ◽  
Moses Pandin

Poverty is one of the indexes that can see how a country succeeds in development. In Indonesia, the poverty rate is high as the impact of the Covid-19 pandemic increases over time. Therefore, a solution is embraced in the form of government policies in tackling poverty in Indonesia. The purpose of this study is to analyze the poverty caused by the Covid-19 pandemic.What is the current state of poverty caused by the Covid-19 pandemic in Indonesia? and what are the previous government policies that have succeeded in reducing poverty in Indonesia? The method used in this study is the literature review method based on the results of critical analysis of journal articles that are relevant to the topic of discussion. The results showed that three government policies have succeeded in lowering the poverty level in Indonesia, namely the PKH program policy, the zakat policy as an indicator of poverty reduction, and the Bank Wakaf Mikro policy. Therefore, this study focuses on the policy as a study for government policy in lowering poverty levels due to the Covid-19 Pandemic.


Author(s):  
Candra Fajri Ananda ◽  
Moh. Khusaini ◽  
Atu Bagus Wiguna

Objective - The poverty issue in East Java Province is an interesting research object. This phenomenon has retrieved in every fiscal year, although the intergovernmental transfer funds increase significantly annually. In the decentralization era, a region has been authorized to identify its problem and provide solutions based on their initiatives and preferences. The local government through their budget should focus on their problem solving, i.e. poverty alleviation. Utilizing panel regression, we found that government spending on education and health can reduce poverty rate. Methodology/Technique - OLS (Ordinary Least Squared) modelwas utilized to answer the objective of the study, that is, to see how the effect of government spending in various sectorson poverty alleviation. Findings - Using the panel regression model, this study found that government spending on education has a negative impact on poverty rate in the East Java Province. The impact on this variable appears to be statistically significant. Novelty - This study showed that central and local government should synchronize their proposed programs, reducing overlapped programs, to pursue a higher efficiency of budget management. Type of Paper - Empirical/Review Keywords: Quality Spending, Budget Deficit/Surplus, Poverty Alleviation. JEL Classification: H72, I31, I32.


2022 ◽  
Vol 11 (1) ◽  
pp. 55-63
Author(s):  
Roberta Bajrami ◽  
Adelina Gashi ◽  
Kosovare Ukshini ◽  
Donat Rexha

The Keynesian theory states that economic growth is positively affected by government spending, while Classical theory states that economic growth is negatively affected by government spending, as is stated by neoclassical public choice theorists (Nyasha & Odhiambo, 2019). Based on these theories, many authors have carried out research on the impact of economic freedom on economic growth by analyzing various empirical cases. Bergh and Karlsson (2010) with the findings from his paper confirmed that the countries with the highest government size have an elevated growth in the globalization index of KOF and the Fraser Institute’s economic freedom index. The main aim of this paper is to analyze the government size impact on the growth of the economy in the Western Balkan in the time period 2000–2017 according to Fraser Institute’s data, incorporating the following econometric models: fixed and random effects, pooled ordinary least squares (OLS), and Hausman-Taylor IV. With these models, this paper analyzes a government size and its components: government enterprises and investment, government consumption, transfers, and subsidies. The results illustrate a relationship between the size of the government and the growth of the economy in the Western Balkans that is positive. 1% increase in government size affects 0.29% gross domestic product (GDP) growth per capita. According to the Hausman-Taylor instrumental variable, 1% growth of government consumption is affected by 0.69% the decline in GDP per capita. The growth rate of transfers and subsidies affects 0.17% of GDP growth per capita and 1% of government enterprises and investment affects 0.54% GDP growth per capita.


2018 ◽  
Vol 21 (2) ◽  
pp. 51-68 ◽  
Author(s):  
Kunofiwa Tsaurai

The study explored the impact of remittances on poverty in selected emerging markets. On the theoretical front, the optimistic view argued that remittances inflow into the labour exporting country reduces poverty whereas the pessimistic view proponents said that remittances dependence syndrome retards both economic growth and income per capita. Separately, using two measures of poverty [the poverty headcount ratio at US $1.90 and US $3.10 a day (% of population)] as dependent variables, the fixed effects approach produced results which supported the remittances led poverty reduction (optimistic) hypothesis whereas the pooled ordinary least squares (OLS) framework found that remittances inflow into the selected emerging markets led to an increase in poverty levels. The implication of the findings is that emerging markets should put in place policies that attract migrant remittances in order to reduce poverty levels. They should avoid over‑reliance on remittances as that might retard economic growth and income per capita.


2017 ◽  
Vol 4 (2) ◽  
pp. 92
Author(s):  
Yaser Ahmad Arabyat

The aim of this study is to choose and estimate the effect of foreign investments in engine for economic growth and hence poverty reduction in the developing countries. The study concluded that there is a weak effect of non-moral of foreign investments on decreasing unemployment in the developing countries, regardless of the existence or absence of development. In addition, the study concluded with a negative effect for the total local production on unemployment and poverty. Finally, we concluded that this may be a result of profit repatriation of foreign firms, crowding out of domestic investment because of FDI or low level of human capital in the country.Consequently, the study recommended to despite how desirable the inflow of FDI is to developing countries, care should be taken when attracting foreign investments and they should be directed to the productive sectors of the economy. Also government should create a competitive environment so as to maximize the benefits of FDI because by exposing foreign investors to an even playing field with indigenous investors.


2013 ◽  
Vol 58 (01) ◽  
pp. 1350005 ◽  
Author(s):  
TEGUH DARTANTO

Most of the studies on the poverty impact of economic shocks as well as policy reforms assumed the poverty line as a fixed line; thus, the poverty outcome of shocks may underestimate (overestimate) and mislead in policy guidance. This research aims at empirically investigating the difference of poverty outcome between applying a fixed and an endogenous poverty line. Applying computable general equilibrium microsimulation (CGE-MS), this study has empirically proven that, if a fixed poverty line is applied, the poverty impact of economic shocks which significantly increase (decrease) price will always be underestimated (overestimated). This study empirically found that there is a 0.316 percentage point difference in the poverty outcome between applying the endogenous poverty line and the fixed poverty line when analyzing the impact on poverty in Indonesia of a doubling in the imported soybean price. Supposing the fixed poverty line, the poverty rate will increase by 0.167 percentage points, while supposing the endogenous poverty line, the poverty rate will increase by 0.483 percentage points. Therefore, applying either an endogenous or a fixed poverty line will have a different policy implication. This study strongly suggested that the endogenous poverty line should be applied when analyzing the poverty impact of shocks due to the precision in outcomes.


Author(s):  
Abebe Shimeles

The Ethiopian economy has maintained a rate of growth in output per worker for twenty years, averaging 6 per cent in real terms. As a result, per capita GDP during this period has doubled, the poverty rate has declined, and productivity in agriculture has improved. However, the country still grapples with rising youth unemployment and widespread poverty mediated by rapid population growth. This chapter examines the interactions between growth, poverty, and inequality by examining features of the Ethiopian labour market. The dynamics of poverty are discussed from the perspective of stylized facts on its components, including the persistence of poverty over time and the role of initial conditions in facilitating or impeding poverty reduction. The chapter investigates the potential role of changes in the sectoral share of employment on poverty and inequality under various policy settings.


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