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Public expenditure on infrastructure and economic growth across Brazilian states

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Author Info
Frederico G. Jayme Jr. (Cedeplar-UFMG)
Guilherme Jonas C. da Silva (Cedeplar-UFMG)
Ricardo S. Martins (Cedeplar-UFMG)

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Abstract

This paper aims at analyzing theoretically and empirically the role of infrastructure expenditure on economic growth in Brazil from 1986 to 2003. The hypothesis is that public infrastructure expenditures in transport are central to foster sustainable growth in Brazil. Theoretical and empirical literature highlights the fact that this type of investment fosters economic growth and the multiplier by means of its effects on productivity. By using a panel data model to Brazilian states, conclusions highlight the fact that infrastructure investments are one of the demand constraints to growth in Brazil.

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File URL: http://www.cedeplar.ufmg.br/pesquisas/td/TD%20346.pdf
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Publisher Info
Paper provided by Cedeplar, Universidade Federal de Minas Gerais in its series Textos para Discussão Cedeplar-UFMG with number td346.

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Length: 12 pages
Date of creation: Feb 2009
Date of revision:
Handle: RePEc:cdp:texdis:td346

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Postal: Cedeplar-FACE-UFMG Av. Antonio Carlos, 6627 Belo Horizonte, MG 31270-901 Brazil

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Related research
Keywords: Investments; Public Policies; Economic Growth; Brazil;

Find related papers by JEL classification:
H54 - Public Economics - - National Government Expenditures and Related Policies - - - Infrastructures
O40 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General
E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy

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This page was last updated on 2009-11-18.


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