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Excluding the Rural Population: The Impact of Public Expenditure on Child Malnutrition in Peru

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  • Gissele Gajate-Garrido

Abstract

Why is the urban–rural gap in child malnutrition increasing in Peru despite government efforts to improve the provision of public services? To answer this question, the impact of regional public expenditure in Peru on young children's nutritional outcomes is examined. To account for policy endogeneity, public expenditures are instrumented using unanticipated regional mining revenues. Even after accounting for changes in expenditure composition due to increases in mining revenues, public spending has a significant and positive impact on children's outcomes only in urban areas. However, even in urban areas, barriers exist that diminish the effectiveness of public expenditure, so indigenous and frailer children in these areas do not benefit from public spending. These children face constraints that limit their ability to use public services. This result reveals the paramount importance of initial conditions. In rural areas, possibly because of the lower quantity and quality of public services, there is no positive effect for any children.

Suggested Citation

  • Gissele Gajate-Garrido, 2014. "Excluding the Rural Population: The Impact of Public Expenditure on Child Malnutrition in Peru," The World Bank Economic Review, World Bank, vol. 28(3), pages 525-544.
    • Handle: RePEc:oup:wbecrv:v:28:y:2014:i:3:p:525-544.
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    File URL: http://hdl.handle.net/10.1093/wber/lht036
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    Cited by:

    1. Ramya Ambikapathi & Jessica D. Rothstein & Pablo Peñataro Yori & Maribel Paredes Olortegui & Gwenyth Lee & Margaret N. Kosek & Laura E. Caulfield, 2018. "Food purchase patterns indicative of household food access insecurity, children’s dietary diversity and intake, and nutritional status using a newly developed and validated tool in the Peruvian Amazon," Food Security: The Science, Sociology and Economics of Food Production and Access to Food, Springer;The International Society for Plant Pathology, vol. 10(4), pages 999-1011, August.
    2. Bin Xiong & Jia Li, 2025. "The Impact of Public Employment Services Efficiency on the Urban Rural Income Gap and Its Spatial Spillover Effect," Sustainability, MDPI, vol. 17(3), pages 1-21, January.
    3. Fani, Djomo Choumbou Raoul & Tabetando, Rayner & Henrietta, Ukpe Udeme & Francois, Siewe, . "The Impact of Government Spending and Food Imports on Nutritional Status in Nigeria: A Dynamic OLS Application and Simulation," International Journal of Food and Agricultural Economics (IJFAEC), Alanya Alaaddin Keykubat University, Department of Economics and Finance, vol. 10(01).
    4. Torres, Javier & Pebe, Carol & Radas, Norally, 2017. "The mining canon and the budget political cycle in Peru’s district municipalities, 2002-2011," Revista CEPAL, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), December.

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