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Addressing Regional Inequality Issues in Bangladesh Public Expenditure

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  • Mahmoud, Chowdhury Shameem
  • Wadood, Syed Naimul
  • Ahmed, Kazi Sabbir

Abstract

The public expenditure allocation in Bangladesh has played a substantial role in improvements of physical infrastructure, health, education, community development, etc. during the recent decades. There have been allegations that inequality in the distribution of political power has often led to some extent to a disproportionate public spending, which in turn may hinder prospects of poverty reduction. The current study aims to examine the research question of whether regional inequality issues are properly addressed within the framework of the public expenditure allocation in Bangladesh during the recent years and if not, whether this has been influenced by some other considerations, which are mainly political by nature. We analyze a panel data set where the dependent variable is the (greater district) per capita ADP allocation within a sector and the independent variables are some explanatory variables, and a variable of interest measuring the proportion of the total number of constituencies within the greater district that belongs to the political party in power. In summary, the study provides evidence of some in-built regional inequality features within the public expenditure allocation in Bangladesh in association with the political favoritism issues involved in a supposedly parliamentary democratic system.

Suggested Citation

  • Mahmoud, Chowdhury Shameem & Wadood, Syed Naimul & Ahmed, Kazi Sabbir, 2008. "Addressing Regional Inequality Issues in Bangladesh Public Expenditure," MPRA Paper 14329, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:14329
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    References listed on IDEAS

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    1. Philip Keefer & Stuti Khemani, 2005. "Democracy, Public Expenditures, and the Poor: Understanding Political Incentives for Providing Public Services," The World Bank Research Observer, World Bank, vol. 20(1), pages 1-27.
    2. Mr. Sanjeev Gupta, 1998. "Does Corruption Affect Income Inequality and Poverty?," IMF Working Papers 1998/076, International Monetary Fund.
    3. Keefer, Philip & Khemani, Stuti, 2003. "Democracy, public expenditures, and the poor," Policy Research Working Paper Series 3164, The World Bank.
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    6. van de Walle, Dominique, 1998. "Assessing the welfare impacts of public spending," World Development, Elsevier, vol. 26(3), pages 365-379, March.
    7. Shankar, Raja & Shah, Anwar, 2003. "Bridging the Economic Divide Within Countries: A Scorecard on the Performance of Regional Policies in Reducing Regional Income Disparities," World Development, Elsevier, vol. 31(8), pages 1421-1441, August.
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    10. Anwar Shah, 2005. "Public Expenditure Analysis," World Bank Publications - Books, The World Bank Group, number 7436.
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    Cited by:

    1. Basu, Tirthankar & Das, Arijit, 2021. "Formulation of deprivation index for identification of regional pattern of deprivation in rural India," Socio-Economic Planning Sciences, Elsevier, vol. 74(C).
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    3. Pankaj Bajracharya & Selima Sultana, 2020. "Rank-size Distribution of Cities and Municipalities in Bangladesh," Sustainability, MDPI, vol. 12(11), pages 1-26, June.

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    More about this item

    Keywords

    Public Expenditure; Regional Inequality; Political Influence in Regional Distribution of Public Expenditure; Panel Data;
    All these keywords.

    JEL classification:

    • H72 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Budget and Expenditures
    • H5 - Public Economics - - National Government Expenditures and Related Policies
    • H76 - Public Economics - - State and Local Government; Intergovernmental Relations - - - Other Expenditure Categories
    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models

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