Political Institutions, Inequality, and Agricultural Growth : The Public Expenditure Connection

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 agricultu...

Full description

Bibliographic Details
Main Authors:	Allcott, Hunt, Lederman, Daniel, López, Ramón
Format:	Policy Research Working Paper
Language:	English
Published:	World Bank, Washington, DC 2012
Subjects:	ABSOLUTE VALUE ACCOUNTABILITY AGRICULTURAL GROWTH AGRICULTURAL OUTPUT AGRICULTURAL PRODUCTION AGRICULTURAL SECTOR AGRICULTURE ALLOCATION AVERAGE TAX RATES BALANCE OF PAYMENTS BUDGET CYCLE BUSINESS CYCLES CAPITAL EXPENDITURES CETERIS PARIBUS COLLECTIVE ACTION COMMODITY PRICES COMPARATIVE POLITICAL ECONOMY COMPOSITION OF EXPENDITURES CONVICTION CORRUPTION IN GOVERNMENT COUNTRY REGRESSIONS DATA COLLECTION DEFENSE EXPENDITURES DEMOCRACY DEPENDENT VARIABLE DESCRIPTIVE STATISTICS DEVELOPING COUNTRIES DISTRIBUTION OF WEALTH ECONOMIC DEVELOPMENT ECONOMIC GROWTH ECONOMIC INEQUALITY ECONOMIC LITERATURE ECONOMIC PERFORMANCE ECONOMIC POLICY ECONOMIC POWER ECONOMIC THEORY ECONOMIC UNCERTAINTY ECONOMICS RESEARCH EDUCATION EXPENDITURES EFFECTIVENESS OF GOVERNMENT ELASTICITIES EMPIRICAL EVIDENCE EMPIRICAL LITERATURE EMPIRICAL MODEL EMPIRICAL MODELS EMPIRICAL STUDIES ENDOGENOUS VARIABLES ESTIMATED COEFFICIENTS EXPENDITURE DATA EXPENDITURE LEVEL EXPENDITURE OUTCOMES EXPLANATORY VARIABLES EXPORT SUBSIDIES EXTERNALITIES FACTOR ENDOWMENTS FINANCIAL CRISES FINANCIAL SUPPORT FISCAL EXPENDITURES FISCAL POLICY FIXED EFFECTS GDP GDP PER CAPITA GINI INDEX GOVERNMENT EXPENDITURES GOVERNMENT INTERVENTIONS GOVERNMENT SPENDING GOVERNMENT SUBSIDY GROSS DOMESTIC PRODUCT GROWTH LITERATURE GROWTH RATE GROWTH REGRESSIONS GROWTH THEORY HEALTH CARE INCOME DISTRIBUTION INCOME INEQUALITY INCREASE GROWTH INSURANCE LABOR FORCE LAGGED DEPENDENT LATIN AMERICAN LOCAL GOVERNMENTS MACROECONOMIC SHOCKS MARKET FAILURES MONETARY ECONOMICS NATIONAL INCOME NEGATIVE EFFECT POLICY CHANGES POLICY ISSUES POLICY MAKERS POLICY RESEARCH POLITICAL ECONOMY POLITICAL INSTITUTIONS POLITICAL STABILITY POLITICIANS POVERTY RATES PRICE INDEX PRIVATE GOODS PRIVATE INVESTMENT PRIVATE SECTOR PRODUCTION FUNCTION PROGRAMS PROPERTY RIGHTS PROPORTIONAL SYSTEMS PUBLIC PUBLIC ECONOMICS PUBLIC EXPENDITURE PUBLIC EXPENDITURE PATTERNS PUBLIC EXPENDITURES PUBLIC FINANCE PUBLIC GOOD PUBLIC GOODS PUBLIC POLICIES PUBLIC REVENUES PUBLIC SERVICES RELATIVE PRICES RESOURCE ALLOCATION RURAL ACTIVITIES RURAL AREAS RURAL POVERTY SERIAL CORRELATION SIZE OF GOVERNMENT SOCIAL EXPENDITURES SOCIAL RETURNS SOCIAL SECURITY SOCIAL SERVICES SOCIAL SPENDING STANDARD DEVIATION STRUCTURAL CHARACTERISTICS STRUCTURE OF GOVERNMENT TAX TAX RATES TOTAL EXPENDITURES TRADE OPENNESS TRADE POLICY TYPES OF EXPENDITURES UNEMPLOYMENT UNEQUAL SOCIETY VOTERS WEALTH DISTRIBUTION
Online Access:	http://documents.worldbank.org/curated/en/2006/04/6737299/political-institutions-inequality-agricultural-growth-public-expenditure-connection http://hdl.handle.net/10986/8689

Description
Summary:	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.

Political Institutions, Inequality, and Agricultural Growth : The Public Expenditure Connection

Similar Items