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Does Allocation of Public Spending Matter in Poverty Reduction? Evidence from Thailand

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  • Shenggen Fan
  • Bingxin Yu
  • Somchai Jitsuchon

Abstract

The present paper uses a panel dataset to estimate the marginal returns to different types of government expenditure on agricultural growth and rural poverty reduction in Thailand. The study finds that additional government spending on agricultural research provides the largest return in terms of agricultural productivity and has the second largest impact on rural poverty reduction. Increased investment in rural electrification has the largest poverty reduction impact, mainly through improved nonfarm employment. Rural education has the third largest impact on both productivity and poverty reduction. Irrigation has a positive impact on agricultural productivity, but regional variation is considerable. Government spending on rural roads has no significant impact on agricultural productivity and its poverty reduction impact ranks last among all investment alternatives considered. Additional investment in the Northeast Region has a greater impact on poverty reduction than in other regions.

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  • Shenggen Fan & Bingxin Yu & Somchai Jitsuchon, 2008. "Does Allocation of Public Spending Matter in Poverty Reduction? Evidence from Thailand," Asian Economic Journal, East Asian Economic Association, vol. 22(4), pages 411-430, December.
    • Handle: RePEc:bla:asiaec:v:22:y:2008:i:4:p:411-430
    DOI: 10.1111/j.1467-8381.2008.00284.x
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    Cited by:

    1. Shenggen Fan, 2020. "Reflections of Food Policy Evolution over the Last Three Decades," Applied Economic Perspectives and Policy, John Wiley & Sons, vol. 42(3), pages 380-394, September.
    2. Khairul Amri & Raja Masbar & B. S. Nazamuddin & Hasdi Aimon, 2024. "Does Unemployment Moderate the Effect of Government Expenditure on Poverty? A Cross-Provinces Data Evidence from Indonesia," Economic Studies journal, Bulgarian Academy of Sciences - Economic Research Institute, issue 2, pages 92-113.
    3. 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).
    4. Mavrotas, George & Mogues, Tewodaj & Oyeyemi, Motunrayo & Smart, Jenny & Xiong, Zhe, 2018. "Agricultural public expenditures, sector performance, and welfare in Nigeria: A state-level analysis," NSSP working papers 60, International Food Policy Research Institute (IFPRI).
    5. Ulrike Nischan & Adam Kennedy & Than Tun, 2016. "Promoting Agricultural Growth in Myanmar: A Review of Policies and an Assessment of Knowledge Gaps," Working Papers id:8792, eSocialSciences.
    6. Faishal Fadli & Ouyang Hongbing & Yaqing Liu, 2020. "Earmarking Tax for Indonesia's Economic Growth through the Education and Health Sector in the Long and Short Term Period," Business and Economic Research, Macrothink Institute, vol. 10(1), pages 1-39, March.
    7. Bingxin Yu & Shenggen Fan, 2011. "Rice production response in Cambodia," Agricultural Economics, International Association of Agricultural Economists, vol. 42(3), pages 437-450, May.
    8. Tun, Than & Kennedy, Adam & Nischan, Ulrike, 2015. "Promoting Agricultural Growth In Myanmar: A Review Of Policies And An Assessment Of Knowledge Gaps," Feed the Future Innovation Lab for Food Security Policy Research Papers 259018, Michigan State University, Department of Agricultural, Food, and Resource Economics, Feed the Future Innovation Lab for Food Security (FSP).
    9. Mogues, Tewodaj & Yu, Bingxin & Fan, Shenggen & Mcbride, Linden, 2012. "The impacts of public investment in and for agriculture: Synthesis of the existing evidence," IFPRI discussion papers 1217, International Food Policy Research Institute (IFPRI).
    10. Nyarkoh, James Bright, 2016. "Modelling Government Expenditure-Poverty Nexus for Ghana," MPRA Paper 75727, University Library of Munich, Germany.
    11. Giang Nguyen, 2020. "Changes in the distribution of household consumption in Southeast Asia," Economic Change and Restructuring, Springer, vol. 53(1), pages 39-60, February.
    12. Dutta, Nabamita & Sobel, Russell S., 2018. "Entrepreneurship and human capital: The role of financial development," International Review of Economics & Finance, Elsevier, vol. 57(C), pages 319-332.
    13. Suchi Kapoor Malhotra & Howard White & Nina Ashley O. Dela Cruz & Ashrita Saran & John Eyers & Denny John & Ella Beveridge & Nina Blöndal, 2021. "Studies of the effectiveness of transport sector interventions in low‐ and middle‐income countries: An evidence and gap map," Campbell Systematic Reviews, John Wiley & Sons, vol. 17(4), December.
    14. Tun, Than & Kennedy, Adam & Nischan, Ulrike, 2015. "Promoting Agricultural Growth in Myanmar: A Review of Policies and an Assessment of Knowledge Gaps," Food Security International Development Papers 230983, Michigan State University, Department of Agricultural, Food, and Resource Economics.
    15. Shuang Yu & Xiaojun Zhao, 2021. "How Do Different Households Respond to Public Education Spending?," Sustainability, MDPI, vol. 13(20), pages 1-24, October.
    16. Dissou, Yazid & Didic, Selma & Yakautsava, Tatsiana, 2016. "Government spending on education, human capital accumulation, and growth," Economic Modelling, Elsevier, vol. 58(C), pages 9-21.

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