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Globalization, Domestic Politics and Social Spending in Latin

Author

Listed:
  • 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.

Suggested Citation

  • Robert R. Kaufman & Alex Segura-Ubiergo, 2005. "Globalization, Domestic Politics and Social Spending in Latin," Public Economics 0504009, EconWPA.
  • Handle: RePEc:wpa:wuwppe:0504009 Note: Type of Document - pdf; pages: 35
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    File URL: http://econwpa.repec.org/eps/pe/papers/0504/0504009.pdf
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    References listed on IDEAS

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    More about this item

    Keywords

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

    JEL classification:

    • D6 - Microeconomics - - Welfare Economics
    • D7 - Microeconomics - - Analysis of Collective Decision-Making
    • H - Public Economics

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