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Public Expenditure and Inclusive Growth - A Survey

Author

Listed:
  • Mr. Younes Zouhar
  • Jon Jellema
  • Nora Lustig
  • Mohamed Trabelsi

Abstract

This paper explores the role of public expenditure in fostering inclusive growth. It starts with a presentation of salient features of public expenditure. Then, it lays out an analytical framework that describes the channels through which public expenditure affects inequality and poverty in the short and long term. Based on a review of the empirical literature, it discusses the policy options. Finally, the paper assesses the role of key factors such as the initial conditions, and the institutions, in shaping the inclusive spending policies.

Suggested Citation

  • Mr. Younes Zouhar & Jon Jellema & Nora Lustig & Mohamed Trabelsi, 2021. "Public Expenditure and Inclusive Growth - A Survey," IMF Working Papers 2021/083, International Monetary Fund.
    • Handle: RePEc:imf:imfwpa:2021/083
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    References listed on IDEAS

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    3. Stefania Fabrizio & Davide Furceri & Rodrigo Garcia-Verdu & Bin Grace Li & Sandra V Lizarazo Ruiz & Marina Mendes Tavares & Futoshi Narita & Adrian Peralta-Alva, 2017. "Macro-Structural Policies and Income Inequality in Low-Income Developing Countries," IMF Staff Discussion Notes 17/01, International Monetary Fund.
    4. Caminada, Koen & Goudswaard, Kees & Wang, Chen, 2012. "Disentangling income inequality and the redistributive effect of taxes and transfers in 20 LIS countries over time," MPRA Paper 42350, University Library of Munich, Germany.
    5. Ms. Stefania Fabrizio & Davide Furceri & Mr. Rodrigo Garcia-Verdu & Ms. Grace B Li & Mrs. Sandra V Lizarazo Ruiz & Ms. Marina Mendes Tavares & Mr. Futoshi Narita & Mr. Adrian Peralta, 2017. "Macro-Structural Policies and Income Inequality in Low-Income Developing Countries," IMF Staff Discussion Notes 2017/001, International Monetary Fund.
    6. Mr. David Coady & Ian W.H. Parry & Nghia-Piotr Le & Baoping Shang, 2019. "Global Fossil Fuel Subsidies Remain Large: An Update Based on Country-Level Estimates," IMF Working Papers 2019/089, International Monetary Fund.
    7. Chen Wang & Kees Goudswaard & Koen Caminada, 2012. "Disentangling Income Inequality and the Redistributive Effect of Taxes and Transfers in 20 LIS Countries Over Time Evidence from the LIS Data," LIS Working papers 581, LIS Cross-National Data Center in Luxembourg.
    8. Orsetta Causa & Mikkel Hermansen, 2017. "Income redistribution through taxes and transfers across OECD countries," OECD Economics Department Working Papers 1453, OECD Publishing.
    9. Mr. David Coady & Valentina Flamini & Louis Sears, 2015. "The Unequal Benefits of Fuel Subsidies Revisited: Evidence for Developing Countries," IMF Working Papers 2015/250, International Monetary Fund.
    10. Boris Cournède & Jean-Marc Fournier & Peter Hoeller, 2018. "Public finance structure and inclusive growth," OECD Economic Policy Papers 25, OECD Publishing.
    11. Mr. Sanjeev Gupta & Alejandro Hajdenberg & Mr. Javier Arze del Granado, 2010. "Is Social Spending Procyclical?," IMF Working Papers 2010/234, International Monetary Fund.
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    Citations

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    Cited by:

    1. Valerie Cerra, 2022. "A Framework For Inclusive And Sustainable Growth In Asia And The Pacific," Asia-Pacific Sustainable Development Journal, United Nations Economic and Social Commission for Asia and the Pacific (ESCAP), vol. 29(1), pages 17-41, May.
    2. Miranda-Lescano, Ronald & Muinelo-Gallo, Leonel & Roca-Sagales, Oriol, 2024. "Human development and inequalities: The importance of social public spending," Structural Change and Economic Dynamics, Elsevier, vol. 69(C), pages 363-377.
    3. Pietrovito, Filomena & Pozzolo, Alberto Franco & Resce, Giuliano & Scialà, Antonio, 2023. "Fiscal decentralization and income (re)distribution in OECD countries’ regions," Structural Change and Economic Dynamics, Elsevier, vol. 67(C), pages 69-81.
    4. Bohne Albrecht & Heinemann Friedrich & Niebel Thomas & Thöne Michael, 2024. "Die Zukunftsquote: ein neuer Kompass für den Bundeshaushalt," Perspektiven der Wirtschaftspolitik, De Gruyter, vol. 25(2), pages 113-129.
    5. Sally Torbert, 2022. "Impact Of Taxes And Transfers On Inequality In The Asia-Pacific Region," Asia-Pacific Sustainable Development Journal, United Nations Economic and Social Commission for Asia and the Pacific (ESCAP), vol. 29(1), pages 43-65, May.

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    More about this item

    Keywords

    public expenditure; social spending; inclusive growth; inequality; poverty; mean inequality impact effectiveness; poverty rate; spending policy; policy option; Income inequality; Income; Global; Africa;
    All these keywords.

    JEL classification:

    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • H50 - Public Economics - - National Government Expenditures and Related Policies - - - General
    • H51 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Health
    • H52 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Education
    • H53 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Welfare Programs
    • H54 - Public Economics - - National Government Expenditures and Related Policies - - - Infrastructures
    • H55 - Public Economics - - National Government Expenditures and Related Policies - - - Social Security and Public Pensions

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