Impacts of Public Expenditures on Agricultural Production, Inequality and Poverty Reduction in the DR Congo: A General Equilibrium Approach

Abstract

This paper examines the impacts of public capital expenditures on the agricultural production, welfare, poverty and inequality in D.R Congo from 2013 to 2030, using computable general equilibrium model. Referring to the various strategic areas of the D.R Congo development, a gradual increase in capital expenditures in the agricultural sector has been contemplated. Examining the results of the simulations allowed us to understand the impacts of various shocks on selected economic agents as well as how shocks affect economic variables. A gradual increase in public capital expenditures in agriculture affects the consumer price index, production branches of activity, productive factors, income, and is therefore transmitted to urban and rural households by affecting the welfare, inequality and poverty.