Public Expenditure and Inclusive Growth - A Survey

Produced by: 
Tulane University
Available from: 
March 2021
Paper author(s): 
Younes Zouhar
Jon Jellema
Nora Lustig
Mohamed Trabelsi
Topic: 
Poverty - Inequality - Aid Effectiveness
Fiscal Policy - Public and Welfare Economics
Year: 
2021

This paper explores the role of public expenditure in fostering inclusive growth. It starts with a presentation of salient features of public expenditure. Then, it lays out an analytical framework that describes the channels through which public expenditure affects inequality and poverty in the short and long term. Based on a review of the empirical literature, it discusses the policy options. Finally, the paper assesses the role of key factors such as the initial conditions, and the institutions, in shaping the inclusive spending policies.

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