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Beyond income transfers: The decline of regional inequality in Brazil during the 2000s

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  • Danilo Limoeiro

    (Massachusetts Institute of Technology, Cambridge, MA, USA)

Abstract

This article seeks to explain declining regional inequality in Brazil by exploring the economic ‘catch-up’ of Brazil’s poorest region. To that end, the article analyzes income policies as well as supply-side policies aimed at improving the productive capacity of poor regions, and presents data showing that both have proven more important than the current literature suggests. The article also introduces the concept of regional Keynesian effects, and provides preliminary evidence for its relevance, to demonstrate that income policies, such as cash transfers to poor regions, have the potential to foster local output growth.

Suggested Citation

  • Danilo Limoeiro, 2015. "Beyond income transfers: The decline of regional inequality in Brazil during the 2000s," Progress in Development Studies, , vol. 15(1), pages 6-21, January.
    • Handle: RePEc:sae:prodev:v:15:y:2015:i:1:p:6-21
    DOI: 10.1177/1464993414546975
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    References listed on IDEAS

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    1. Laura B. Rawlings, 2004. "A New Approach to Social Assistance: Latin America’s Experience with Conditional Cash Transfer Programs," World Bank Publications - Reports 11813, The World Bank Group.
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    4. Pack, Howard & Saggi, Kamal, 2006. "The case for industrial policy : a critical survey," Policy Research Working Paper Series 3839, The World Bank.
    5. Eduardo Zepeda, 2006. "Do CCTs Reduce Poverty?," One Pager 21, International Policy Centre for Inclusive Growth.
    6. 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.
    7. Alexandre Rands Barros & André Matos Magalhães, 2007. "Northeast Brazil Under The Lula Government," Working Papers 55, Datamétrica Consultoria Econômica, revised 2007.
    8. André Rodríguez‐Pose & Glauco Arbix, 2001. "Strategies of Waste: Bidding Wars in the Brazilian Automobile Sector," International Journal of Urban and Regional Research, Wiley Blackwell, vol. 25(1), pages 134-154, March.
    9. Rodrik, Dani, 2004. "Industrial Policy for the Twenty-First Century," CEPR Discussion Papers 4767, C.E.P.R. Discussion Papers.
    10. Ariel Fiszbein & Norbert Schady & Francisco H.G. Ferreira & Margaret Grosh & Niall Keleher & Pedro Olinto & Emmanuel Skoufias, 2009. "Conditional Cash Transfers : Reducing Present and Future Poverty," World Bank Publications - Books, The World Bank Group, number 2597.
    11. Lucas, Robert E, Jr, 1990. "Supply-Side Economics: An Analytical Review," Oxford Economic Papers, Oxford University Press, vol. 42(2), pages 293-316, April.
    12. Rawlings, Laura B., 2004. "A new approach to social assistance : Latin America's experience with conditional cash transfer programs," Social Protection Discussion Papers and Notes 30165, The World Bank.
    13. Marcus Noland & Howard Pack, 2002. "Industrial Policies and Growth: Lessons From International Experience," Central Banking, Analysis, and Economic Policies Book Series, in: Norman Loayza & Raimundo Soto & Norman Loayza (Series Editor) & Klaus Schmidt-Hebbel (Series Editor) (ed.),Economic Growth: Sources, Trends, and Cycles, edition 1, volume 6, chapter 9, pages 251-308, Central Bank of Chile.
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    Cited by:

    1. Rougier, Eric & Combarnous, François & Fauré, Yves-André, 2018. "The “Local Economy” Effect of Social Transfers: An Empirical Assessment of the Impact of the Bolsa Família Program on Local Productive Structure and Economic Growth," World Development, Elsevier, vol. 103(C), pages 199-215.

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