The Effect of Petroleum Royalties on Social Indicators of Brazilian Municipalities

27 Pages Posted: 17 Aug 2009

See all articles by Fernando Postali

Fernando Postali

University of São Paulo (USP) - Department of Economics

Marislei Nishijima

Institute of International Relations - University of Sao Paulo (USP) ; Institute of International Relations - University of Sao Paulo (USP)

Date Written: August 14, 2009

Abstract

In 1997 the Brazilian government passed Law number 9478, establishing new criteria for petroleum royalty transfers to Brazilian municipalities. The goal of this paper is to evaluate whether royalties distributed under this law contributed to improving social indicators relative to the national average in the eligible municipalities. We used a 'difference-in-differences' measurement to compare changes in selected social indicators within affected and unaffected municipal districts in 1991 and 2000. Results show that while royalties had a negative impact on indicators linked to infrastructure, such as the percentage of population with power and water supply, indicators related to income inequalities — Gini coefficient and poverty rate — were positively impacted.

Keywords: oil rents, regional development, Latin America, Brazil

JEL Classification: Q32, Q38

Suggested Citation

Postali, Fernando Antonio Slaibe and Nishijima, Marislei and Nishijima, Marislei, The Effect of Petroleum Royalties on Social Indicators of Brazilian Municipalities (August 14, 2009). Available at SSRN: https://ssrn.com/abstract=1452879 or http://dx.doi.org/10.2139/ssrn.1452879

Fernando Antonio Slaibe Postali (Contact Author)

University of São Paulo (USP) - Department of Economics ( email )

Av. Prof. Luciano Gualberto 908
Sao Paulo SP, 05508-900
Brazil
+55 11 30915915 (Phone)
+55 11 30915915 (Fax)

Marislei Nishijima

Institute of International Relations - University of Sao Paulo (USP) ( email )

Av. Prof. Lúcio Martins Rodrigues, s/n, travessas
Cidade Universitária
Sao Paulo, SP 05508-020
Brazil
1130910526 (Phone)
1130910526 (Fax)

HOME PAGE: http://marislei.iri.usp.br/en/home-2/

Institute of International Relations - University of Sao Paulo (USP) ( email )

Av. Prof. Lúcio Martins Rodrigues, s/n, travessas
Cidade Universitária
São Paulo, São Paulo 05508-020
Brazil
+55(11) 3091-0526 (Phone)

HOME PAGE: http://marislei.iri.usp.br

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
75
Abstract Views
641
rank
421,415
PlumX Metrics