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How Effective is Public Spending? Public Investment Composition and Rural Welfare in Ethiopia

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  • Mogues, Tewodaj
  • Ayele, Gezahegn
  • Paulos, Zelekawork
  • Fan, Shenggen

Abstract

One of the most important policy tools in developing countries for affecting economic growth and poverty reduction is expenditure policy. As governments decide how to allocate public spending, they need a clear understanding of how public investments translate into development outcomes. Using regional, zonal, and household-level data from Ethiopia, this paper analyses the relative returns, in terms of rural welfare, to different forms of public investment, including investment in agriculture, health, education, road infrastructure, and health.

Suggested Citation

  • Mogues, Tewodaj & Ayele, Gezahegn & Paulos, Zelekawork & Fan, Shenggen, 2006. "How Effective is Public Spending? Public Investment Composition and Rural Welfare in Ethiopia," 2006 Annual meeting, July 23-26, Long Beach, CA 21258, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    • Handle: RePEc:ags:aaea06:21258
    DOI: 10.22004/ag.econ.21258
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    References listed on IDEAS

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