No abstract

In this note we provide evidence on the importance of location for the growth of per capita income of Brazilian states over the period 1985-2001. The study presents strong evidence of spatial dependence, and that regional inequality reduction occurred simultaneously with increasing spatial autocorrelation. The analysis of local indicators of spatial association confirmed that conclusion, showing the existence of two geographical clusters, one of low income states in the Northeast and North regions, and another of rich states in the Southeast and South regions. The low value for the convergence coefficient, in conjunction with the strong influence of shocks in the residuals, indicate the existence of a very sensible dynamic pattern of convergence across Brazilian states, which helps explaining the well documented persistence in regional income disparities in Brazil. After conditioning on other important variables that could affect growth, however, spatial dependence disappears. We have thus identified two potential channels through which the strong spatial dependence in the process of convergence of per capita income of Brazilian states occurs. Copyright (c) 2006 the author(s). Journal compilation (c) 2006 RSAI.

No abstract

We decompose the recent changes in regional inequality in Brazil into its components, highlighting the role of spatially blind social programs. We aggregate personal income micro data to the state level, differentiating nine income sources, and assess the role of these components in the observed changes in regional inequality indicators. The main results indicate that the largest part of the recent reduction in regional inequality is related to the dynamics of the market-related labor income, with manufacturing and services favoring deconcentration. Labor income in agriculture, retirement and pensions, and property rents and other sources favored concentration. The social programs Bolsa Família and Benefícios de Prestação Continuada are responsible for more than 24 percent of the reduction in inequality, although they account for less than 1.7 percent of the disposable household income. Such positive impact on regional concentration is impressive, since the goals of the programs are clearly nonspatial.

O180, R110, R150,