Factors that Influence the State Expenditure: Comparison of the Maldivian Communities

  • Mohamed Zahir Maldives National University
Keywords: social capital, multi-dimensional framework, public expenditure, structural equation model (SEM)


The literature on public policy is growing as academics and social scientists have studied how public distribution policy or a mixture of policies has been influenced by multi-dimensional factors; that is, how the provision of state expenditures is determined. This article provides a model formation of commonly used multi-dimensional variables by using a structural equation model (SEM) to demonstrate the relationship between policy determinants and major state expenditures for education, health and infrastructure. A sample set of communities from 187 islands in the Maldives that are grouped into three provinces were used in this study. As a beginning argument, the theoretical justification of socio-economics, political factors and social capital factors was determined. Moreover, a model was created and confirmed as fitting into a local context and applicable for estimating the relationship in a clear and valid approach.


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