Synopsis: Subnational public expenditures, short term household level welfare, and economic resilience: Evidence from Nigeria

Hiroyuki Takeshima, Bedru Balana, Jenny Smart, Hyacinth O. Edeh, Motunrayo Ayowumi Oyeyemi and Kwaw S. Andam

No 54, NSSP policy notes from International Food Policy Research Institute (IFPRI)

Abstract: This study estimates the effects of the shares of subnational public expenditure (PE) for agriculture, health, education, and social-welfare, as well as PE-size, on household-level outcomes, using nationally representative panel household data and district and state-level PE data for Nigeria. We find that greater shares of total PE allocated to agriculture, health, and social-welfare, conditional on PE-size, generally have positive effects on household consumption levels, poverty reduction, and non-farm business capital investments by households. A greater share of total PE for agriculture also positively benefits household dietary diversity across seasons. Moreover, household economic resilience, measured in terms of the economic flexibility a household has to shift between farming and non-farm activities, is more greatly enhanced through greater shares of total PE going towards agriculture than to health and social-welfare. These multi-dimensional benefits of greater PE for agriculture are particularly worthy of attention in countries, like Nigeria, which have historically allocated a low share of total PE to agriculture.

Keywords: expenditure; social structure; public expenditures; poverty alleviation; consumption; households; welfare; agriculture; household consumption; resilience; Nigeria; Western Africa; Sub-Saharan Africa; Africa (search for similar items in EconPapers)
Date: 2021
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Persistent link: https://EconPapers.repec.org/RePEc:fpr:nssppn:54

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