Economic Geography of Human Development: Stratified Growth in Bolivia, Brazil, Guatemala and Peru
Author(s): D. Mayer-Foulkes
This article presents a model of regional economic growth and human development driven by endogenous technological change. It shows that regional differences based on economic geography dynamics and local governance can lead to stratification and divergence. Econometric analyses show that individual and local indicators of regional macroeconomic wellbeing, public provision of goods, and of private good levels all intervene as determinants of early child development (ECD). The research is based on an econometric analysis of surveys from 43 regions across Bolivia, Brazil, Guatemala and Peru, which include three main indicators of early child development: (1) proportion of received vaccinations; (2) health status indicator based on chronic malnutrition indicators, last child's birth weight, prevalence and intensity of diarrhoea, and morbidity in last two weeks; and (3) height for age z-score (HAZ) for children aged five or less. The results of the research demonstrate that at the individual level, ECD inequities are positively associated with inequities in employment, basic household quality, household goods, education, and being born in the countryside. At the local level, living in the countryside is associated with lower levels of inequity, compared to large or capital cities. Finally, mean regional migration inflow, but not individual migration, is strongly associated with higher ECD levels at all educational levels. Migration inflow measures how much a region has been a development pole. This means that children living in development poles fared better than children from other regions. The article concludes that human development occurs in the context of local incentives and costs determined by local economic conditions and perspectives. Barriers to migration, industrial scale effects, and deficiencies in transportation infrastructure translate into barriers for human capital investment, thus leading to persistent inequities. In order to reduce these inequities, public policies must address all of these areas and be tailored to local needs. It may even be appropriate to promote the formation of development poles and facilitate migration.