Public social expenditure, access to drinking water and sanitation for rural populations in Latin America

The aim of this study is to shed light on the nature of the relationship between public social spending and water and sanitation coverage for rural populations in Latin America between 1994 and 2014. Using generalized least squares, four models were proposed to describe the relationship between the percentage of coverage in both urban and rural populations with public social spending, as well as with other control variables. Their co-integration has also been established. The evidence indicates that there is a highly-consistent positive correlation between public social spending and the level of coverage in those rural populations in which high access costs are normally incurred. These costs increase when there is no nearby water source or participation mechanisms. Therefore, state intervention has been necessary to increase coverage.