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Globalization, Domestic Politics and Social Spending in Latin

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Author Info

  • Robert R. Kaufman

    (Rutgers University)

  • Alex Segura-Ubiergo

    (International Monetary Fund)

Abstract

This paper analyzes the impact of globalization on social spending in Latin America. It shows that trade integration has a consistently negative effect on social security expenditures, and that this effect is compounded by higher integration into capital markets. The importance of political institutions is also key. Popularly-based governments tend to increase social security transfers, which reach a relatively small but politically powerful constituency in the formal sector. By contrast, the change to democracy increases education and health spending, which reaches a larger segment of the population.

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File URL: http://128.118.178.162/eps/pe/papers/0504/0504009.pdf
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Bibliographic Info

Paper provided by EconWPA in its series Public Economics with number 0504009.

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Length: 35 pages
Date of creation: 30 Apr 2005
Date of revision:
Handle: RePEc:wpa:wuwppe:0504009

Note: Type of Document - pdf; pages: 35
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Web page: http://128.118.178.162

Related research

Keywords: globalization; social spending; fiscal discipline; Latin America; trade openness; social policy;

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Citations

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Cited by:
  1. Resnick, Danielle, 2012. "Foreign Aid in Africa: Tracing Channels of Influence on Democratic Transitions and Consolidation," Working Paper Series UNU-WIDER Research Paper , World Institute for Development Economic Research (UNU-WIDER).
  2. N. Van De Sijpe, 2010. "Is foreign aid fungible? Evidence from the education and health sectors," Working Papers of Faculty of Economics and Business Administration, Ghent University, Belgium 10/688, Ghent University, Faculty of Economics and Business Administration.
  3. Sanjeev Gupta & Alejandro Simone & Alex Segura-Ubiergo, 2006. "New Evidence on Fiscal Adjustment and Growth in Transition Economies," IMF Working Papers 06/244, International Monetary Fund.
  4. Busemeyer, Marius R., 2007. "Social democrats and education spending: A refined perspective on supply-side strategies," MPIfG Working Paper 07/2, Max Planck Institute for the Study of Societies.
  5. Simon Wigley & Arzu Akkoyunlu-Wigley, 2011. "Do electoral institutions have an impact on population health?," Public Choice, Springer, vol. 148(3), pages 595-610, September.
  6. Ricardo Martin & Alex Segura-Ubiergo, 2005. "Fiscal Discipline and Social Spending in IMF-supported Programs," Public Economics 0504012, EconWPA.
  7. Machado, Fabiana, 2011. "Does Inequality breed Altruism or Selfishness? Gauging Individuals’ Predispositions Towards Redistributive Schemes," MPRA Paper 35664, University Library of Munich, Germany.
  8. Busemeyer, Marius R., 2007. "The Impact of Fiscal Decentralisation on Education and Other Types of Spending," MPIfG Discussion Paper 07/8, Max Planck Institute for the Study of Societies.
  9. Markus Leibrecht & Michael Klien & Oezlem Onaran, 2011. "Globalization, welfare regimes and social protection expenditures in Western and Eastern European countries," Public Choice, Springer, vol. 148(3), pages 569-594, September.
  10. Carlos Mulas-Granados, 2003. "The Trade-Off between Growth & Equality and the Economic Impact of Alternative Fiscal Adjustment Strategies in the EU," European Economy Group Working Papers 20, European Economy Group.
  11. Carlos Mulas-Granados, 2005. "Fiscal Adjustments and the Short-Term Trade-Off between economic growth and equality," Hacienda Pública Española, IEF, vol. 172(1), pages 61-92, June.
  12. Ricardo Martin & Alex Segura-Ubiergo, 2005. "Social Spending in IMF-supported Programs," Public Economics 0504011, EconWPA.
  13. Wibbels, Erik, 2006. "Dependency Revisited: International Markets, Business Cycles, and Social Spending in the Developing World," International Organization, Cambridge University Press, vol. 60(02), pages 433-468, April.

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