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More Spatial balance with a health calamity? Accounting for the effects of the COVID-19 pandemic on the Brazilian regional income inequality

Author

Listed:
  • Leal, Caroline Ferreira

    (Universidade Federal de Pernambuco (PIMES/UFPE))

  • Silveira Neto, Raul da Mota

    (Universidade Federal de Pernambuco (PIMES/UFPE))

Abstract

The COVID-19 crisis has left negative economic marks on Brazil, with the GDP dropping by approximately 3.9% between 2019 and 2020. However, its impact on regional income disparity remains unclear. Less developed states, with fragile healthcare systems, face greater challenges in dealing with the health issues brought by the pandemic, while more prosperous ones, with more structured economies, suffer more from restrictions and lockdowns. Additionally, government policies such as the Emergency Aid played a crucial role in income redistribution, benefiting the most in need. This study, using data from PNADC between 2012 and 2022 and inequality analysis methods, examines the dynamics of regional income disparity in Brazil pre and post-pandemic. The results suggest that the crisis has contributed to reducing regional income disparities, highlighting the relevance of public policies and changes in market income sources.

Suggested Citation

  • Leal, Caroline Ferreira & Silveira Neto, Raul da Mota, 2023. "More Spatial balance with a health calamity? Accounting for the effects of the COVID-19 pandemic on the Brazilian regional income inequality," Revista Brasileira de Estudos Regionais e Urbanos, Associação Brasileira de Estudos Regionais e Urbanos (ABER), vol. 17(4), pages 462-484.
    • Handle: RePEc:ris:rberur:0198
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    References listed on IDEAS

    as
    1. Raul Silveira Neto & Carlos Azzoni, 2011. "Non-Spatial Government Policies and Regional Income Inequality in Brazil," Regional Studies, Taylor & Francis Journals, vol. 45(4), pages 453-461.
    2. López-Feldman, Alejandro & Mora, Jorge & Taylor, J. Edward, 2007. "Does natural resource extraction mitigate poverty and inequality? Evidence from rural Mexico and a Lacandona Rainforest Community," Environment and Development Economics, Cambridge University Press, vol. 12(2), pages 251-269, April.
    3. Raul M. Silveira-Neto & Carlos R. Azzoni, 2012. "Social Policy As Regional Policy: Market And Nonmarket Factors Determining Regional Inequality," Journal of Regional Science, Wiley Blackwell, vol. 52(3), pages 433-450, August.
    4. Desmet, Klaus & Wacziarg, Romain, 2022. "JUE Insight: Understanding spatial variation in COVID-19 across the United States," Journal of Urban Economics, Elsevier, vol. 127(C).
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Pandemic; COVID-19; Regional disparities;
    All these keywords.

    JEL classification:

    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
    • R28 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Government Policy

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