IDEAS home Printed from https://ideas.repec.org/a/ecr/col070/48047.html
   My bibliography  Save this article

The effects of oil royalties on regional inequality in Brazil

Author

Listed:
  • Santos, Rafaela Nascimento
  • Ribeiro, Luiz Carlos de Santana
  • Santana, José Ricardo de

Abstract

This article evaluates the impact of oil royalties on Brazil’s production structure and their effects on regional inequality. An interregional input-output model was used, encompassing the 27 Brazilian states and 26 sectors, with base year 2008. The simulation strategy assumed 75% of these funds are channelled into education and 25% into the health sector, as mandated by Law 12.858/2013. To measure the effect of royalties on regional inequality, the Gini coefficient was calculated both ex-ante and ex-post with respect to the impact analysis. The main findings indicate that interregional and intersectoral spillovers are weak; but, in the Southeast and Northeast regions, the investment of royalties in education and health could help reduce intraregional inequality.

Suggested Citation

  • Santos, Rafaela Nascimento & Ribeiro, Luiz Carlos de Santana & Santana, José Ricardo de, 2022. "The effects of oil royalties on regional inequality in Brazil," Revista CEPAL, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), April.
    • Handle: RePEc:ecr:col070:48047
    as

    Download full text from publisher

    File URL: http://repositorio.cepal.org/handle/11362/48047
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Guilhoto, J. J. M. & Sesso Filho, U. A., 2005. "Estimação da Matriz Insumo-Produto a Partir De Dados Preliminares das Contas Nacionais [Estimation of input-output matrix using preliminary data from national accounts]," MPRA Paper 38212, University Library of Munich, Germany.
    2. Lauro Carnicelli & Fernando Antonio Slaibe Postali, 2014. "Royalties Do Petróleo E Emprego Públiconos Municípios Brasileiros," Anais do XL Encontro Nacional de Economia [Proceedings of the 40th Brazilian Economics Meeting] 234, ANPEC - Associação Nacional dos Centros de Pós-Graduação em Economia [Brazilian Association of Graduate Programs in Economics].
    3. Celso Bissoli Sessa & Thiago Cavalcante Simonato & Edson Paulo Domingues, 2017. "O ciclo das commodities e crescimento regional desigual no Brasil: uma aplicação de equilíbrio geral computável (EGC)," Textos para Discussão Cedeplar-UFMG 551, Cedeplar, Universidade Federal de Minas Gerais.
    4. James Feyrer & Erin T. Mansur & Bruce Sacerdote, 2017. "Geographic Dispersion of Economic Shocks: Evidence from the Fracking Revolution," American Economic Review, American Economic Association, vol. 107(4), pages 1313-1334, April.
    5. Hunt Allcott & Daniel Keniston, 2018. "Dutch Disease or Agglomeration? The Local Economic Effects of Natural Resource Booms in Modern America," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 85(2), pages 695-731.
    6. Postali, Fernando Antonio Slaibe, 2009. "Petroleum royalties and regional development in Brazil: The economic growth of recipient towns," Resources Policy, Elsevier, vol. 34(4), pages 205-213, December.
    7. Jiménez, Juan Pablo & Tromben, Varinia, 2006. "Política fiscal y bonanza: impacto del aumento de los precios de los productos no renovables en América Latina y el Caribe," Revista CEPAL, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), December.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Boslett, Andrew & Hill, Elaine & Ma, Lala & Zhang, Lujia, 2021. "Rural light pollution from shale gas development and associated sleep and subjective well-being," Resource and Energy Economics, Elsevier, vol. 64(C).
    2. Nida Cakir Melek & Michael Plante & Mine Yucel, 2021. "Resource Booms and the Macroeconomy: The Case of U.S. Shale Oil," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 42, pages 307-332, October.
    3. Julia Skretting, 2022. "Oil Windfalls and Regional Economic Performance in Russia," Working Papers No 02/2022, Centre for Applied Macro- and Petroleum economics (CAMP), BI Norwegian Business School.
    4. Stock, James H. & Bradt, Jacob T., 2020. "Analysis of proposed 20-year mineral leasing withdrawal in Superior National Forest," Ecological Economics, Elsevier, vol. 174(C).
    5. Grant D. Jacobsen, 2019. "Who Wins In An Energy Boom? Evidence From Wage Rates And Housing," Economic Inquiry, Western Economic Association International, vol. 57(1), pages 9-32, January.
    6. Bjørnland, Hilde C. & Thorsrud, Leif Anders & Torvik, Ragnar, 2019. "Dutch disease dynamics reconsidered," European Economic Review, Elsevier, vol. 119(C), pages 411-433.
    7. Pelzl, Paul & Poelhekke, Steven, 2021. "Good mine, bad mine: Natural resource heterogeneity and Dutch disease in Indonesia," Journal of International Economics, Elsevier, vol. 131(C).
    8. Bergholt, Drago & Røisland, Øistein & Sveen, Tommy & Torvik, Ragnar, 2023. "Monetary policy when export revenues drop," Journal of International Money and Finance, Elsevier, vol. 137(C).
    9. Deiana, Claudio & Giua, Ludovica, 2023. "This site is closed! The effect of decommissioning mining waste facilities on mortality in the long run," Journal of Environmental Economics and Management, Elsevier, vol. 119(C).
    10. Hilde C. Bj�rnland & Julia Zhulanova, 2018. "The Shale Oil Boom and the U.S. Economy: Spillovers and Time-Varying Effects," Working Papers No 8/2018, Centre for Applied Macro- and Petroleum economics (CAMP), BI Norwegian Business School.
    11. Unel, Bulent & Upton, Gregory B., 2023. "Oil & gas induced economic fluctuations and self-employment," Labour Economics, Elsevier, vol. 82(C).
    12. Eyer, Jonathan & Kahn, Matthew E., 2020. "Prolonging coal’s sunset: Local demand for local supply," Regional Science and Urban Economics, Elsevier, vol. 81(C).
    13. Upton, Gregory B. & Yu, Han, 2021. "Labor demand shocks and earnings and employment differentials: Evidence from the U.S. shale oil & gas boom," Energy Economics, Elsevier, vol. 102(C).
    14. Berry, Kevin & James, Alexander & Smith, Brock & Watson, Brett, 2022. "Geography, Geology, and Regional Economic Development," Journal of Environmental Economics and Management, Elsevier, vol. 115(C).
    15. Stephan Heblich, 2019. "Ist Angst ein guter Ratgeber? [Fear is not a good advisor]," Zeitschrift für Immobilienökonomie (German Journal of Real Estate Research), Springer;Gesellschaft für Immobilienwirtschaftliche Forschung e. V., vol. 5(1), pages 89-94, November.
    16. Mehic, Adrian, 2020. "The Electoral Consequences of Nuclear Fallout: Evidence from Chernobyl," Working Papers 2020:23, Lund University, Department of Economics.
    17. Daniel Berkowitz & Andrew J. dup Boslett & Jason Brown & Jeremy G. Weber, 2022. "Rational but Not Prescient: Borrowing during the Fracking Boom," Research Working Paper RWP 2022-05, Federal Reserve Bank of Kansas City.
    18. Lutz Kilian & Xiaoqing Zhou, 2022. "The Propagation of Regional Shocks in Housing Markets: Evidence from Oil Price Shocks in Canada," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 54(4), pages 953-987, June.
    19. Parra-Cely, Sergio & Zanoni, Wladimir, 2022. "The Labor Market Worsening Effects of a Resource Bust: Evidence from the Crude Oil Price Shock in Ecuador," IDB Publications (Working Papers) 12268, Inter-American Development Bank.
    20. Felipe de S Tavares & Alexandre Almeida & Fernando Postali, 2021. "Does Oil Dependence Affect Regional Wealth? A Regional Study for the Municipalities of the State of Rio de Janeiro," International Journal of Energy Economics and Policy, Econjournals, vol. 11(6), pages 381-391.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ecr:col070:48047. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Biblioteca CEPAL (email available below). General contact details of provider: https://edirc.repec.org/data/eclaccl.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.