Federal transfers, interregional inequality and redistribution in Latin America

Abstract

This work analyzes the impact of federal transfers and subnational expenditure in human development and interregional equity. Data on federal transfers and subnational spending in Argentina, Brazil, Mexico, Chile, and Colombia, between 1983 and 2011, indicate that the redistributive power of the central government is statistically associated with improvements in interregional equity but not with better values in the human development index. Exactly the opposite results are found for subnational social spending.

Keywords

• federalismo
• desigualdad interregional
• desarrollo
• redistribución