[go: up one dir, main page]
IDEAS home Printed from https://ideas.repec.org/p/ags/iaae12/126663.html
   My bibliography  Save this paper

Government Expenditures, Social Outcomes, and Marginal Productivity of Agricultural Inputs: A Case Study for Tanzania

Author

Listed:
  • Allen, Summer L.
  • Badiane, Ousmane
  • Ulimwengu, John M.
Abstract
Using the most recent data from Tanzania, we investigate the impacts of district-level health and education expenditures on marginal productivities of agricultural inputs and overall production. We use a covariance structural model combined with a mixed linear model to account for the endogeneity of social outcomes and technological heterogeneity across districts. Our results confirm the significance of government social expenditures in human capital formation as measured through health and education indicators and their effects on agricultural productivity. Indeed, the marginal productivities of inputs (labor in particular) respond significantly and positively to health and education outcomes, especially considered jointly. The impacts also seem to be a function of the type of health constraint, with short-term health factors such as malaria and diarrhea impacting productivity from seeds and fertilizer while longer-term health constraints seem to have greater impacts on labor quality and land productivity. Our results also confirm the importance of considering intra-country heterogeneity as well as climate-related constraints, as the results show that annual precipitation has a signification impact on production for all specifications.

Suggested Citation

  • Allen, Summer L. & Badiane, Ousmane & Ulimwengu, John M., 2012. "Government Expenditures, Social Outcomes, and Marginal Productivity of Agricultural Inputs: A Case Study for Tanzania," 2012 Conference, August 18-24, 2012, Foz do Iguacu, Brazil 126663, International Association of Agricultural Economists.
    • Handle: RePEc:ags:iaae12:126663
    DOI: 10.22004/ag.econ.126663
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/126663/files/Allen.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.126663?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. McNamara, Paul E. & Ulimwengu, John M. & Leonard, Kenneth L., 2010. "Do health investments improve agricultural productivity? Lessons from agricultural household and health research," IFPRI discussion papers 1012, International Food Policy Research Institute (IFPRI).
    2. Benin, Samuel & Mogues, Tewodaj & Cudjoe, Godsway & Randriamamonjy, Josee, 2009. "Public expenditures and agricultural productivity growth in Ghana," 2009 Conference, August 16-22, 2009, Beijing, China 51634, International Association of Agricultural Economists.
    3. Fulginiti, Lilyan E & Perrin, Richard K, 1993. "Prices and Productivity in Agriculture," The Review of Economics and Statistics, MIT Press, vol. 75(3), pages 471-482, August.
    4. Allcott, Hunt & Lederman, Daniel & Lopez, Ramon, 2006. "Political institutions, inequality, and agricultural growth : the public expenditure connection," Policy Research Working Paper Series 3902, The World Bank.
    5. Badiane, Ousmane & Ulimwengu, John, 2009. "The growth-poverty convergence agenda: Optimizing social expenditures to maximize their impact on agricultural labor productivity, growth, and poverty reduction in Africa," IFPRI discussion papers 906, International Food Policy Research Institute (IFPRI).
    6. Robert E. Hall & Charles I. Jones, 1999. "Why do Some Countries Produce So Much More Output Per Worker than Others?," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 114(1), pages 83-116.
    7. John Anyanwu & Andrew E. O. Erhijakpor, 2009. "Health Expenditures and Health Outcomes in Africa," African Development Review, African Development Bank, vol. 21(2), pages 400-433.
    8. Shenggen Fan & Xiaobo Zhang, 2008. "Public Expenditure, Growth and Poverty Reduction in Rural Uganda," African Development Review, African Development Bank, vol. 20(3), pages 466-496.
    9. Pauw, Karl & Thurlow, James, 2011. "Agricultural growth, poverty, and nutrition in Tanzania," Food Policy, Elsevier, vol. 36(6), pages 795-804.
    10. Mundlak, Yair & Butzer, Rita & Larson, Donald F., 2012. "Heterogeneous technology and panel data: The case of the agricultural production function," Journal of Development Economics, Elsevier, vol. 99(1), pages 139-149.
    11. Mundlak, Yair & Larson, Don & Butzer, Ritz, 1997. "The determinants of agricultural production : a cross-country analysis," Policy Research Working Paper Series 1827, The World Bank.
    12. Gupta, Sanjeev & Verhoeven, Marijn & Tiongson, Erwin R., 2002. "The effectiveness of government spending on education and health care in developing and transition economies," European Journal of Political Economy, Elsevier, vol. 18(4), pages 717-737, November.
    13. Gregory Amacher & Jeffrey Alwang, 2004. "Productivity and Land Enhancing Technologies in Northern Ethiopia: Health, Public Investments, and Sequential Adoption," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 86(2), pages 321-331.
    14. Emanuele Baldacci & Maria Teresa Guin-Siu & Luiz De Mello, 2003. "More on the effectiveness of public spending on health care and education: a covariance structure model," Journal of International Development, John Wiley & Sons, Ltd., vol. 15(6), pages 709-725.
    15. Shenggen Fan & Peter Hazell & Sukhadeo Thorat, 2000. "Government Spending, Growth and Poverty in Rural India," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 82(4), pages 1038-1051.
    16. Derek Headey & Mohammad Alauddin & D.S. Prasada Rao, 2010. "Explaining agricultural productivity growth: an international perspective," Agricultural Economics, International Association of Agricultural Economists, vol. 41(1), pages 1-14, January.
    17. Mr. Emanuele Baldacci & Mr. Larry Q Cui & Mr. Benedict J. Clements & Mr. Sanjeev Gupta, 2004. "Social Spending, Human Capital, and Growth in Developing Countries: Implications for Achieving the MDGs," IMF Working Papers 2004/217, International Monetary Fund.
    18. Kalaitzandonakes, N.G. & Dunn, E.G., 1995. "Technical Efficiency, Managerial Ability and Farmer Education in Guatemalan Corn Production: A Latent Variable Analysis," Agricultural and Resource Economics Review, Cambridge University Press, vol. 24(1), pages 36-46, April.
    19. Achyuta R. Adhvaryu & Kathleen Beegle, 2012. "The Long-Run Impacts of Adult Deaths on Older Household Members in Tanzania," Economic Development and Cultural Change, University of Chicago Press, vol. 60(2), pages 245-277.
    20. John Anyanwu & Andrew E. O. Erhijakpor, 2007. "Working Paper 91 - Health Expenditures and Health Outcomes in Africa," Working Paper Series 226, African Development Bank.
    21. Kalaitzandonakes, Nicholas G. & Dunn, Elizabeth G., 1995. "Technical Efficiency, Managerial Ability And Farmer Education In Guatemalan Corn Production: A Latent Variable Analysis," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 24(1), pages 1-11, April.
    22. Asenso-Okyere, Kwadwo & Chiang, Catherine & Thangata, Paul & Andam, Kwaw S., 2011. "Interactions between health and farm-labor productivity:," Food policy reports 23, International Food Policy Research Institute (IFPRI).
    23. Fan, Shenggen & Zhang, Linxiu & Zhang, Xiaobo, 2002. "Growth, inequality, and poverty in rural China: the role of public investments," Research reports 125, International Food Policy Research Institute (IFPRI).
    24. Phillips, Joseph M. & Marble, Robert P., 1986. "Farmer education and efficiency: a frontier production function approach," Economics of Education Review, Elsevier, vol. 5(3), pages 257-264, June.
    25. Dethier, Jean-Jacques & Effenberger, Alexandra, 2012. "Agriculture and development: A brief review of the literature," Economic Systems, Elsevier, vol. 36(2), pages 175-205.
    26. Fan, Shenngen & Hazell, Peter & Haque, T., 2000. "Targeting public investments by agro-ecological zone to achieve growth and poverty alleviation goals in rural India," Food Policy, Elsevier, vol. 25(4), pages 411-428, August.
    27. Francis Teal, 2011. "Higher Education and Economic Development in Africa: A Review of Channels and Interactions -super-†," Journal of African Economies, Centre for the Study of African Economies, vol. 20(suppl_3), pages -79, August.
    28. International Monetary Fund, 2002. "Moreon the Effectiveness of Public Spendingon Health Care and Education: A Covariance Structure Model," IMF Working Papers 2002/090, International Monetary Fund.
    29. Matthew Cole & Eric Neumayer, 2006. "The impact of poor health on total factor productivity," Journal of Development Studies, Taylor & Francis Journals, vol. 42(6), pages 918-938.
    30. Maddison, David & Manley, Marita & Kurukulasuriya, Pradeep, 2007. "The impact of climate change on African agriculture : a ricardian approach," Policy Research Working Paper Series 4306, The World Bank.
    31. Fan, Shenggen & Nyange, David & Rao, Neetha, 2005. "Public investment and poverty reduction in Tanzania: evidence from household survey data," DSGD discussion papers 18, International Food Policy Research Institute (IFPRI).
    32. Asenso-Okyere, Kwadwo & Asante, Felix A. & Tarekegn, Jifar & Andam, Kwaw S., 2009. "The linkages between agriculture and malaria: Issues for policy, research, and capacity strengthening," IFPRI discussion papers 861, International Food Policy Research Institute (IFPRI).
    33. Fan, Shenggen & Rao, Neetha, 2003. "Public spending in developing countries: trends, determination, and impact," EPTD discussion papers 99, International Food Policy Research Institute (IFPRI).
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Ulimwengu, J. & Makombe, T., 2018. "Farmers’ Social Expenditures and Agricultural Productivity A state variables approach," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 276000, International Association of Agricultural Economists.
    2. Séne, Ligane & Cissé, Momath, 2014. "Local government spending and multidimensional poverty in Senegal: insight from the fuzzy approach," MPRA Paper 58602, University Library of Munich, Germany, revised 15 Sep 2014.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Ulimwengu, J. & Makombe, T., 2018. "Farmers’ Social Expenditures and Agricultural Productivity A state variables approach," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 276000, International Association of Agricultural Economists.
    2. Jean-Marc Montaud & Mahamadou Roufahi Tankari, 2013. "When social goals meet economic goals: the double dividend of extending free access to healthcare in Uganda," Working Papers hal-01880339, HAL.
    3. Sene, Ligane Massamba & Badiane, Ousmane, 2015. "Out-of-pocket health payments: a catalyst for agricultural productivity growth, but with potentially impoverishing effects," 2015 Conference, August 9-14, 2015, Milan, Italy 212261, International Association of Agricultural Economists.
    4. Renkow, Mitch, 2010. "Impacts of IFPRI's "priorities for pro-poor public investment" global research program:," Impact assessments 31, International Food Policy Research Institute (IFPRI).
    5. 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).
    6. McNamara, Paul E. & Ulimwengu, John M. & Leonard, Kenneth L., 2010. "Do health investments improve agricultural productivity? Lessons from agricultural household and health research," IFPRI discussion papers 1012, International Food Policy Research Institute (IFPRI).
    7. Chemingui, Mohamed Abdelbasset, 2007. "Public spending and poverty reduction in an oil-based economy: The case of Yemen," IFPRI discussion papers 701, International Food Policy Research Institute (IFPRI).
    8. Manfred Wiebelt & Rainer Schweickert & Clemens Breisinger & Marcus Böhme, 2011. "Oil revenues for public investment in Africa: targeting urban or rural areas?," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 147(4), pages 745-770, November.
    9. Ligane Massamba Séne & Ousmane Badiane, 2016. "Out-of-pocket health payments: a catalyst for agricultural productivity growth, but with potentially impoverishing effects in Senegal," Review of Agricultural, Food and Environmental Studies, Springer, vol. 97(1), pages 29-49, June.
    10. Shenggen Fan, 2020. "Reflections of Food Policy Evolution over the Last Three Decades," Applied Economic Perspectives and Policy, John Wiley & Sons, vol. 42(3), pages 380-394, September.
    11. Mogues, Tewodaj & Yu, Bingxin & Fan, Shenggen & Mcbride, Linden, 2012. "The impacts of public investment in and for agriculture: Synthesis of the existing evidence," IFPRI discussion papers 1217, International Food Policy Research Institute (IFPRI).
    12. World Bank, 2012. "Niger : Investing for Prosperity - A Poverty Assessment [NIGER: Investir pour la prospérité - Evaluation de la pauvreté au Niger]," World Bank Publications - Reports 12312, The World Bank Group.
    13. Carl Grekou & Romain Perez, 2014. "Child Mortality in sub-Saharan Africa: Why Public Health Spending Matters," EconomiX Working Papers 2014-28, University of Paris Nanterre, EconomiX.
    14. Emerta Aragie & Jean Balié, 2021. "Public spending on agricultural productivity and rural commercialization: A comparison of impacts using an economy‐wide approach," Development Policy Review, Overseas Development Institute, vol. 39(S1), pages 21-41, August.
    15. Fatima, Amber & Shahbaz, Muhammad & Islam, Faridul, 2012. "Nexus of Trade, Investment and Poverty: Evidence from Pakistan," Bangladesh Development Studies, Bangladesh Institute of Development Studies (BIDS), vol. 35(2), pages 87-108, June.
    16. Boachie, Micheal Kofi & Ramu, K., 2015. "Public Health Expenditure and Health Status in Ghana," MPRA Paper 66371, University Library of Munich, Germany.
    17. Raouf, Mariam & Kassim, Yumna & Kurdi, Sikandra & Mogues, Tewodaj & Mahmoud, Mai & Randriamamonjy, Josée & Thurlow, James & Wiebelt, Manfred & Breisinger, Clemens, 2018. "The (Arab) Agricultural Investment for Development Analyzer (AIDA): An innovative tool for evidence-based planning," MENA working papers 6, International Food Policy Research Institute (IFPRI).
    18. Allen, Summer L. & Qaim, Matin, 2012. "Agricultural productivity and public expenditures in sub-saharan africa:," IFPRI discussion papers 1173, International Food Policy Research Institute (IFPRI).
    19. Benin, Samuel & Mogues, Tewodaj & Cudjoe, Godsway & Randriamamonjy, Josee, 2009. "Public expenditures and agricultural productivity growth in Ghana," 2009 Conference, August 16-22, 2009, Beijing, China 51634, International Association of Agricultural Economists.
    20. Fan, Shenggen & Nyange, David & Rao, Neetha, 2005. "Public investment and poverty reduction in Tanzania: evidence from household survey data," DSGD discussion papers 18, International Food Policy Research Institute (IFPRI).

    More about this item

    Keywords

    Research and Development/Tech Change/Emerging Technologies;

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:iaae12:126663. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/iaaeeea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.