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PRIVATIZATION and Social Spending in the Least Developed African Economies:A Study of Ethiopia

Author

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  • Jesiah, Selvam

Abstract

This paper examines the linkage between privatization and social spending in the least developed African economies with reference to Ethiopia. Many previous studies have proved that privatisation has had a direct and positive effect on social welfare. The study used data over ten years, 1994/95-2003/04, and simple econometrics model to test whether or not there is any connectivity between privatisation and social spending. Four major overheads are selected for this study: Education, health, road construction and social welfare. The empirical results show that the connectivity of privatisation in relation to these overheads is weak and fragile, owing to the small size of privatisation programme which was implemented in Ethiopia. War is also identified as an affecting factor on social spending. This study concludes that the objectives when they are set must be compatible with the programme. Inconsistent and lavish objectives may cause damage about the opinion of the particular policy when evaluated.

Suggested Citation

  • Jesiah, Selvam, 2007. "PRIVATIZATION and Social Spending in the Least Developed African Economies:A Study of Ethiopia," MPRA Paper 41823, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:41823
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    References listed on IDEAS

    as
    1. Stefan Dercon, 2002. "The Impact of Economic Reforms in Rural Households in Ethiopia : A Study from 1989 to 1995," World Bank Publications - Books, The World Bank Group, number 13980.
    2. John Nellis, 2003. "Privatization in Africa: What has Happened? What is to be Done?," Working Papers 25, Center for Global Development.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Privatisation; social spending; education; health; road construction; social welfare and overheads;
    All these keywords.

    JEL classification:

    • H51 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Health
    • H53 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Welfare Programs
    • H52 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Education
    • L33 - Industrial Organization - - Nonprofit Organizations and Public Enterprise - - - Comparison of Public and Private Enterprise and Nonprofit Institutions; Privatization; Contracting Out

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