Expenditure Composition and Economic Development in Benin

Author: Mr. Marco Pani and Mohamed El Harrak

This paper analyzes expenditure composition and economic development in Benin.

Volume/Issue: Volume 2010 Issue 005

Publication date: May 2010

ISBN: 9781455266364

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Topics covered in this book

This title contains information about the following subjects. Click on a subject if you would like to see other titles with the same subjects.

Labor , Public Finance , DPPP , DP , wage bill , rate of return , labor market , public expenditure , wage demand , workers unemployed , wage disparity , bill yield , expected wage , number of worker , rural wage , Wages , Labor supply , Labor demand , Public investment spending , Civil service , economic development in BeninExpenditure composition , BeninExpenditure composition , economic development in Benin , wage level , private sector

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Summary

This paper analyzes expenditure composition and economic development in Benin. It addresses some specific issues on the basis of a stylized model of the Beninese economy that highlights the tradeoff between expenditure on wages and investment. The model takes into account specific characteristics of the Beninese economy, including the large share of agriculture in employment and GDP, the large number of urban unemployed engaged in precarious informal sector activities, and the strong influence of labor unions in the formal labor market concentrated in the urban areas.