Globalization, Domestic Politics and Social Spending in Latin
AbstractThis 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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Bibliographic InfoPaper provided by EconWPA in its series Public Economics with number 0504009.
Length: 35 pages
Date of creation: 30 Apr 2005
Date of revision:
Note: Type of Document - pdf; pages: 35
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globalization; social spending; fiscal discipline; Latin America; trade openness; social policy;
Find related papers by JEL classification:
- D6 - Microeconomics - - Welfare Economics
- D7 - Microeconomics - - Analysis of Collective Decision-Making
- H - Public Economics
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