The potential benefits of reallocation of government subsidies in Bangladesh

Mohammad Jabbar () and David Colman

No 235156, Research Report/Working Paper from Bangladesh Agricultural University, Mymensingh, Department of Agricultural Economics

Abstract: In this study subsidies are considered both an element of government expenditure and a source of household income. The impact of reallocating existing subsidy expenditures to elected alternatives are estimated upon factors such as growth, employment, personal savings, indirect ta and import using a semi-closed input-output model. The results indicate substantial scope for deriving additional benefits by reallocating the existing subsidies on foreign wage earnings and urban food ration (enjoyed by the richer classes) to fertilizer, food grain procurement or rural food ration (enjoyed by the poorer classes). Reallocation of fertilizer or rural food ration have no benefits. The benefits of reallocation of production activities are higher than for consumption activities.

Keywords: Agricultural and Food Policy; Labor and Human Capital; Public Economics (search for similar items in EconPapers)
Date: 1990-07
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Persistent link: https://EconPapers.repec.org/RePEc:ags:baumwp:235156

DOI: 10.22004/ag.econ.235156

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