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Income Convergence Clubs for Brazilian Municipalities: a Non-Parametric Analysis

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Author Info
Márcio Laurini
Eduardo Andrade

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Abstract

In this article we analyze the evolution of relative per capita income distribution of Brazilian municipalities over the period 1970-1996. Our analyses are based on nonparametric methodologies and do not assume probability distributions or functional forms for the data. We have carried out two convergence tests - a test for Sigma convergence based on the Bootstrap principle and a Beta convergence test using Smoothing Splines for the growth regressions. The results obtained demonstrate the need to model the dynamics of income for Brazilian municipalities as a process of convergence clubs, using the methodology of transition matrices and stochastic kernels. The results show the formation of two convergence clubs, a low income club formed by the municipalities of the North and Northeast regions, and another high income club formed by the municipalities of the Center-West, Southeast and South regions. The formation of convergence clubs is confirmed by a bootstrap test for multimodality

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Paper provided by Econometric Society in its series Econometric Society 2004 Latin American Meetings with number 51.

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Date of creation: 11 Aug 2004
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Handle: RePEc:ecm:latm04:51

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Related research
Keywords: Convergence Clubs; Non-Parametric Methods; Distribution Dynamics;

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Find related papers by JEL classification:
C14 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: General - - - Semiparametric and Nonparametric Methods
O15 - Economic Development, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
O18 - Economic Development, Technological Change, and Growth - - Economic Development - - - Regional, Urban, and Rural Analyses
R11 - Urban, Rural, and Regional Economics - - General Regional Economics - - - Analysis of Growth, Development, and Changes

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  1. Carlos R. Azzoni, 2001. "Economic growth and regional income inequality in Brazil," The Annals of Regional Science, Springer, vol. 35(1), pages 133-152. [Downloadable!] (restricted)
  2. Ferreira, Francisco H. G. & Lanjouw, Peter & Neri, Marcelo Cortes, 2002. "A Robust Poverty Profile for Brazil Using Multiple Data Sources," Economics Working Papers (Ensaios Economicos da EPGE) 444, Graduate School of Economics, Getulio Vargas Foundation (Brazil). [Downloadable!]
    Other versions:
  3. Afonso Henriques Borges Ferreira & Clélio Campolina Diniz, 1994. "Convergência entre as rendas per capita estaduais no Brasil," Textos para Discussão Cedeplar-UFMG td079, Cedeplar, Universidade Federal de Minas Gerais.
  4. Quah, Danny, 1993. "Galton's Fallacy and Tests of the Convergence Hypothesis," CEPR Discussion Papers 820, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
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  5. Swan, Trevor W, 2002. "Economic Growth," The Economic Record, The Economic Society of Australia, vol. 78(243), pages 375-80, December. [Downloadable!] (restricted)
  6. Bulli, Sandra, 2001. "Distribution Dynamics and Cross-Country Convergence: A New Approach," Scottish Journal of Political Economy, Scottish Economic Society, vol. 48(2), pages 226-43, May. [Downloadable!] (restricted)
  7. Gary S. Becker & Kevin M. Murphy & Robert Tamura, . "Human Capital, Fertility, and Economic Growth," University of Chicago - Population Research Center 90-5a, Chicago - Population Research Center. [Downloadable!]
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  8. Friedman, Milton, 1992. "Do Old Fallacies Ever Die?," Journal of Economic Literature, American Economic Association, vol. 30(4), pages 2129-32, December. [Downloadable!] (restricted)
  9. Mossi, Mariano & Aroca, Patricio & Fernandez, Ismael & Azzoni, Carlos, 2002. "Growth dynamics and space in Brazil," ERSA conference papers ersa02p499, European Regional Science Association. [Downloadable!]
  10. Mills, Jeffrey A & Zandvakili, Sourushe, 1997. "Statistical Inference via Bootstrapping for Measures of Inequality," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 12(2), pages 133-50, March-Apr. [Downloadable!]
  11. Afonso Henriques Borges Ferreira, 1998. "Concentração regional e dispersão das rendas per capita estaduais: um comentário," Textos para Discussão Cedeplar-UFMG td121, Cedeplar, Universidade Federal de Minas Gerais. [Downloadable!]
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