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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. 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.
  2. 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.
  3. 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.
  4. 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).
  5. Nicolas Van de Sijpe, 2013. "Is Foreign Aid Fungible? Evidence from the Education and Health Sectors," World Bank Economic Review, World Bank Group, vol. 27(2), pages 320-356.
  6. Fabiana Machado, 2012. "Does Inequality Breed Altruism or Selfishness? Gauging Individuals' Predispositions towards Redistributive Schemes," Research Department Publications 4762, Inter-American Development Bank, Research Department.
  7. Manoel Bittencourt, 2013. "Democracy and Education: Evidence from the Southern African Development Community," Working Papers 201387, University of Pretoria, Department of Economics.
  8. Daron Acemoglu & Suresh Naidu & Pascual Restrepo & James A. Robinson, 2013. "Democracy, Redistribution and Inequality," NBER Working Papers 19746, National Bureau of Economic Research, Inc.
  9. Ricardo Martin & Alex Segura-Ubiergo, 2005. "Fiscal Discipline and Social Spending in IMF-supported Programs," Public Economics 0504012, EconWPA.
  10. 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.
  11. Mohammad Reza Farzanegan & Sajjad Faraji Dizaji, 2014. "Political Institutions and Government Spending Behavior in Iran," MAGKS Papers on Economics 201403, Philipps-Universität Marburg, Faculty of Business Administration and Economics, Department of Economics (Volkswirtschaftliche Abteilung).
  12. 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.
  13. 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.
  14. Alex Segura-Ubiergo & Alejandro Simone & Sanjeev Gupta & Qiang Cui, 2010. "New Evidence on Fiscal Adjustment and Growth in Transition Economies," Comparative Economic Studies, Palgrave Macmillan, vol. 52(1), pages 18-37, March.
  15. Ricardo Martin & Alex Segura-Ubiergo, 2005. "Social Spending in IMF-supported Programs," Public Economics 0504011, EconWPA.
  16. 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.
  17. Özlem Onaran & Valerie Boesch, 2014. "The effect of globalization on the distribution of taxes and social expenditures in Europe: do welfare state regimes matter?," Environment and Planning A, Pion Ltd, London, vol. 46(2), pages 373-397, February.

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