@article{Fan:37898,
      recid = {37898},
      author = {Fan, Shenggen and Hazell, Peter B.R. and Thorat, Sukhadeo},
      title = {Linkages between government spending, growth, and poverty  in rural India},
      address = {1999},
      number = {605-2016-40180},
      series = {Research Report},
      pages = {95},
      year = {1999},
      abstract = {This research report on India addresses an important  policy issue faced by policymakers in many developing  countries: how to allocate public funds more efficiently in  order to achieve both growth and poverty-reduction goals in  rural areas. This research is particularly important at a  time when many developing countries are undergoing  substantial budget cuts as part of macroeconomic reforms  and adjustment.
The econometric model employed in this  research includes a broad range of government expenditure  items. It traces their effects on productivity growth and  poverty alleviation and ranks them, exploring the potential  trade-offs and complementarities of the two goals. Of the  various investments weighed, the report finds that  investments in rural roads and agricultural research and  development have the greatest impact, while government  spending specifically targeted to poverty reduction such as  rural development and employment programs have only modest  effects. In the light of these results, many developing  countries may want to take a second look at their policies  for poverty reduction and growth. This report is the first  of several planned at IFPRI under a new program of work on  public investment policies for agriculture and rural areas.  Similar work is already ongoing in China and is planned for  Africa. Related studies will also examine ways to
improve  efficiency in the supply of public goods for rural areas,  both in terms of improving performance and reducing unit  costs within public institutions, and in clarifying the  appropriate roles of the public, private, and civil society  sectors. Work is also planned on issues related to the  financing of public investments in rural areas.},
      url = {http://ageconsearch.umn.edu/record/37898},
      doi = {https://doi.org/10.22004/ag.econ.37898},
}