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The effects of oil royalties on regional inequality in Brazil

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Date
2022-04
Author
Santos, Rafaela Nascimento
Ribeiro, Luiz Carlos de Santana
Santana, José Ricardo de
UN Symbol
LC/PUB.2022/5-P
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Abstract
This article evaluates the impact of oil royalties on Brazil’s production structure and their effects on regional inequality. An interregional input-output model was used, encompassing the 27 Brazilian states and 26 sectors, with base year 2008. The simulation strategy assumed 75% of these funds are channelled into education and 25% into the health sector, as mandated by Law 12.858/2013. To measure the effect of royalties on regional inequality, the Gini coefficient was calculated both ex-ante and ex-post with respect to the impact analysis. The main findings indicate that interregional and intersectoral spillovers are weak; but, in the Southeast and Northeast regions, the investment of royalties in education and health could help reduce intraregional inequality.
Translation
Efectos de las regalías petroleras en la desigualdad regional en el Brasil
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CEPAL Review

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Serie
CEPAL Review No. 136
ECLAC Subtopics
ECONOMIC GROWTH ; INCOME DISTRIBUTION ; PRODUCTIVITY ; TERRITORIAL DEVELOPMENT
United Nations Subtopics
ECONOMIC DEVELOPMENT ; REGIONAL DEVELOPMENT ; PETROLEUM REVENUES ; ROYALTIES ; PRODUCTIVITY ; REGIONAL DISPARITIES ; INCOME DISTRIBUTION ; INPUT-OUTPUT ANALYSIS
Country / Region
BRAZIL
URI
https://hdl.handle.net/11362/48047
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