Abstract

GARBERO, María Noelia. Impacto de la globalización y la apertura comercial en el gasto público social subnacional. Estud. Econ. [online]. 2016, vol.33, n.66, pp. 9-45. ISSN 2525-1295.

The aim of this paper is to study the effects of economic liberalization and globalization on the structure of provincial government spending in Argentina. In particular, the effects on social expenditure and its components as an expression of the welfare state. Most of the literature has focused on identifying this relationship at the country level and a novel aspect of this work is to extend the analysis to the province. Another contribution is to estimate an index of provincial globalization adapted from Index KOF (Dreher, 2006). A dynamic model is estimated using the generalized method of moments and a panel data for 24 jurisdictions of Argentina for the period 1993-2010. The results indicate that openness and globalization of the economy, negatively impact the share of social spending, the result expected from the point of view of the "efficiency" effects versus the "compensation" effects; although there are indications of compensatory policies related to education spending.

Keywords : Openness; Globalization; Expenditure Structure; Social Spending; Subnational Governments.