Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/202520
Authors: 
Fabella, Raul V.
Daway-Ducanes, Sarah Lynne
Year of Publication: 
2018
Series/Report no.: 
UPSE Discussion Paper No. 2018-04
Abstract: 
Using two-step system-GMM on a panel data of 105 economies over the period 1987-2016, we present formal statistical evidence that Federalism is a strong predictor of greater income inequality in developing economies. It is also a strong predictor of higher poverty incidence and poverty severity on average for all countries. Federalism does not predict lower poverty incidence and severity in developing countries. Thus for a developing economy such as the Philippines, Federalism appears to be a leap from the frying pan into the fire of even greater income inequality and poverty incidence.
Subjects: 
federalism
poverty
inequality
JEL: 
D3
I3
O1
Document Type: 
Working Paper

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