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Instituições e nível de renda: Uma abordagem empírica para os municípios paranaenses [Institutions and income level: an empirical approach to Paraná's municipalities]

Author

Listed:
  • Ana Elisa Gonçalves Pereira

    (FGV/EESP)

  • Luciano Nakabashi

    (FEA-RP/USP)

  • Márcio A. Salvato

    (IBMEC-MG)

Abstract

Municipalities in the state of Paraná show a great disparity in income levels. The difference between the municipalities with the highest and lowest GDP per worker at the beginning of this millennium was greater than 700%, according to IBGE (2000) data. A possible explanation for these disparities is provided by institutional theory. Many empirical studies in this field have found a high correlation between institutional quality and economic development. The theory suggests that institutions affect the income level by means of the distribution of political power, the generation of economic opportunities, stimulus for innovation and accumulation of human capital, in addition to other ways. With this scenario in mind, the objective of this study is to measure the quality of institutions in the municipalities of Paraná State and evaluate the effect they have on their respective income levels.

Suggested Citation

  • Ana Elisa Gonçalves Pereira & Luciano Nakabashi & Márcio A. Salvato, 2012. "Instituições e nível de renda: Uma abordagem empírica para os municípios paranaenses [Institutions and income level: an empirical approach to Paraná's municipalities]," Nova Economia, Economics Department, Universidade Federal de Minas Gerais (Brazil), vol. 22(3), pages 597-620, September.
    • Handle: RePEc:nov:artigo:v:22:y:2012:i:3:p:597-620
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    More about this item

    Keywords

    institutions; income level; Paraná economy;
    All these keywords.

    JEL classification:

    • O43 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Institutions and Growth
    • R10 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - General
    • C26 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Instrumental Variables (IV) Estimation

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