Public expenditure and poverty in Tanzania :An empirical analysis
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Date
2001
Authors
Journal Title
Journal ISSN
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Publisher
University of Dar es Salaam
Abstract
Although greater public spending on primary and secondary education and on primary health care is being advocated by many, little empirical evidence exists on the beneficial impact of such spending on social indicators (I.e. education attainment and health status) and so in poverty reduction. The study has set out to examine and measure the magnitude of the empirical relationship between actual public expenditure in the social sector and poverty reduction in Tanzania. The study has set out to examine and measure the magnitude of the empirical relationship between actual public expenditure in the social sector and poverty reduction in Tanzania. In carrying the study using time series data, the model using the conventional Ordinary Least Squares technique, as developed by Sanjeev Gupta, Marjin Verhoeven, and Ervin Tiongson (1999) has been used. To avoid both spurious and inconsistent regression results, the test for data stationarity and cointegration were conducted a prior. The findings, to a certain extent, have shown that actual expenditure allocations within the two social sectors (i.e. education and health) improve both access to and attainment in schools and reduce mortality rates for infants, and at the same time increase life expectancy of the population. While these findings compare well to those done in other studies, caution should be taken a priori with regard to their interpretation for policy purposes. However, these results are useful and shed more light to government; that is, if expenditure allocations for education and health care are to boost economic growth and thus promote the well being of the poor, policy makers and planners need to pay greater attention to allocations within these sectors.
Description
Available in print form, East Africana Collection, Dr.Wilbert Chagula Library, (THS EAF HJ 7925.T34L49)
Keywords
Poverty, Public Expenditure, Government spending policy, Tanzania
Citation
Leyaro, V (2001) Public expenditure and poverty in Tanzania :An empirical analysis, Masters dissertation, University of Dar es Salaam, Dar es Salaam.