Departmental Papers

Expenditure Composition and Economic Development in Benin

Author/Editor:

Marco Pani ; Mohamed El Harrak

Publication Date:

May 27, 2010

Electronic Access:

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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.

Series:

Departmental Paper No 2010/005

Subject:

Civil service Expenditure Labor Labor demand Labor supply Public investment spending Wages

Notes:

Also available in French.