Government spending, growth and poverty | Land Portal

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Date of publication: 
janvier 1998
ISBN / Resource ID: 
125689
Pages: 
iii, 86 pages : ill., tables 28 cm.
Copyright details: 
IFPRI adheres to the basic tenets of the Budapest Open Access Initiative, articulated in 2002 (subject to any applicable third-party rights and or confidentiality obigations). All applicable data are subject to IFPRI’s Institutional Review Board (IRB) guidelines. Copyright © 2013 International Food Policy Research Institute (IFPRI). All rights reserved.

Poverty in rural India has declined substantially in recent decades. This steady decline in poverty was strongly associated with agricultural growth, particularly the green revolution, which in turn was a response to massive public investments in agriculture and rural infrastructure. Public investment in rural areas has also benefitted the poor through its impact on the growth of the rural non-farm economy, and government expenditure on rural poverty and employment programs,which has grown rapidly, has directly benefitted the rural poor. The primary purpose of this study is to investigate the causes of the decline in rural poverty in India, and particularly to disentangle the specific role that government investments have played. We seek to quantify the effectiveness of different types of government expenditures in contributing to poverty alleviation. The study uses state level data for 1970 to 1993 to estimate an econometric model that permits calculation of the number of poor people raised above the poverty line for each additional million rupees spent on different expenditure items. The model is also structured to enable identification of the different channels through which different types of government expenditures impact on the poor. But targeting government expenditures simply to reduce poverty is not sufficient. Government expenditures also need to stimulate economic growth. The model is therefore formulated so as to measure the growth as well as the poverty impact of different items of government expenditure. The results from our model show that government spending on productivity enhancing investments, such as agricultural R&D and irrigation, rural infrastructure (including roads and electricity), and rural development targeted directly on the rural poor, have all contributed to reductions in rural poverty, and most have also contributed to growth in agricultural productivity.

Auteurs et éditeurs

Author(s), editor(s), contributor(s): 

Fan, Shenggen

Publisher(s): 

About IFPRI


The International Food Policy Research Institute (IFPRI) provides research-based policy solutions to sustainably reduce poverty and end hunger and malnutrition in developing countries. Established in 1975, IFPRI currently has more than 500 employees working in over 50 countries. It is a research center of theCGIAR Consortium, a worldwide partnership engaged in agricultural research for development.


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About IFPRI


The International Food Policy Research Institute (IFPRI) provides research-based policy solutions to sustainably reduce poverty and end hunger and malnutrition in developing countries. Established in 1975, IFPRI currently has more than 500 employees working in over 50 countries. It is a research center of theCGIAR Consortium, a worldwide partnership engaged in agricultural research for development.


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