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TitlePUBLIC SPENDING COMPOSITION AND PUBLIC SECTOR EFFICIENCY: IMPLICATIONS FOR GROWTH AND POVERTY REDUCTION IN UGANDA
AuthorSENNOGA, Edward. B; MATOVU, John Mary
SubjectPoverty Reduction
Date of Publication2010
PublisherEconomic Policy Research Centre (EPRC)
Number of Pages32 pages
LanguageEnglish
Geographical CoverageAfrica, Uganda
KeywordsPublic Expenditure, Computable General Equilibrium, Economic Growth
AbstractThis paper examines the interrelationships between public spending composition and Uganda’s development goals including economic growth and poverty reduction. We utilize a dynamic CGE model to study these interrelationships. This paper demonstrates that public spending composition does indeed influence economic growth and poverty reduction. In particular, this study shows that improved public sector efficiency coupled with re-allocation of public expenditure away from the unproductive sectors such as public administration and security to the productive sectors including agriculture, energy, water, and health leads to higher GDP growth rates and accelerates poverty reduction. Moreover, the rate of poverty reduction is faster in rural households relative to the urban households. A major contribution of this paper is that investments in agriculture particularly with a view to promoting value addition and investing in complementary infrastructure including roads and affordable energy contributes to higher economic growth rates and also accelerates the rate of poverty reduction.
Copyright HolderEconomic Policy Research Centre (EPRC)
Copyright URLhttp://www.eprc.or.ug
Filesize542707 MB
File FormatPDF
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