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Distributive politics and spatial equity: the allocation of public investment in Chile

ABSTRACT Distributive politics and spatial equity: the allocation of public investment in Chile. Regional Studies. This paper analyzes the influence of electoral concerns on investment distribution from the central government to Chilean municipalities. Drawing upon panel data, it shows that investment is mediated by pork-barrel and political budget cycles, as well as favouring the relatively better-off areas. Estimations also reveal that resources are channelled to the municipalities where the vote margin in local elections is larger, whereas national results are not relevant, indicating that local governments’ lobbying capacity is prioritized over national electoral interests. Based on these results, the implications for regional governance and for reducing the margin of arbitrary allocations are discussed.