FREILLE SEBASTIAN
Artículos
Título:
Do intergovernmental transfers affect the distribution of manufacturing production across regions in federal countries? Theory and evidence for Argentina
Autor/es:
MONCARZ, PEDRO ESTEBAN; FREILLE, SEBASTIÁN; FIGUERAS, ALBERTO JOSÉ; GRIÓN, NESTOR CLEVER
Revista:
Regional and Federal Studies
Editorial:
Routledge
Referencias:
Año: 2017 vol. 27 p. 359 - 359
ISSN:
1359-7566
Resumen:
he effect of changes in the distribution of top-to-bottom intergovernmental transfers on the location of manufacturing production is analysed using a modified version of the footloose capital model. An increase in the share of transfers received by a region increases its share of manufacturing production the larger are transaction costs; the larger is the share of transfers going directly to consumers; the larger is the share of manufacturing consumption vis-à-vis non-tradable consumption; and the easier consumers can substitute among manufacturing varieties. Using data for Argentina for 1983-2005, the empirical analysis appears to support the existence of two distinctive regimes, with smaller/poorer provinces benefiting in terms of the location of manufacturing production as a response to an increase in transfers. Also, for these provinces, the benefits are greater if they are politically aligned with the federal government, especially through the receipt of discretionary transfers.