Latin America - Determinants of Regional Welfare Disparities within Latin American Countries : Country Case Studies

This study analyzes the complicated and dynamic nature of welfare differences across space. The objectives are two-fold. First, the study seeks to provide a methodological framework useful for investigating the determinants of the observed differences in the standards of living between two regions at a given point in time. Second, it aims to provide empirical evidence on regional welfare differences to inform the policy debate surrounding regional inequalities within countries. Chapter two sets the stage by presenting the poverty profiles within and between regions in each of the eight countries in study. Chapter three reviews the methodology, based on the Oaxaca-Blinder (1973) decomposition method used to asses the relative size of the concentration and geography effect in welfare differences across regions/areas. Chapter four reports the findings from various comparisons conducted between urban and rural areas within regions, and urban vs. urban (or rural vs. rural) areas between regions. Chapter five focuses on the role of internal migration within Latin America (LAC) countries. Chapter six summarizes the available empirical evidence regarding the poverty and welfare impacts of the two most distinct types interventions associated with the concentration and the geography views: conditional cash transfers; and territorial development strategies. Chapter seven summarizes findings and discusses some of their main policy implications.