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Convergence, dynamics, and geography of economic growth : The case of municipalities in Rio Grande do Norte, Brazil

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  • Verner, Dorte
  • Tebaldi, Edinaldo

Abstract

Analyses of municipal GDP growth in Rio Grande do Norte in the Northeast of Brazil during 1970-96 reveal that the cross-section dispersion of per capita income increased over time. Although the analysis indicates some spatial dependence in income, it is small and has a downward trend, indicating that the growth path is only weakly determined by geographical links in Rio Grande do Norte. Moreover, dynamic analyses based on the Markov chain transition matrix show that the probability of a municipality moving from a poor income class to a rich class is very small and vice-versa. Municipalities located in the middle-income class have high mobility, but there is no strong evidence indicating direction. Public policy should include assisting the rural families by providing them education and training that increases their opportunities for employment. There should also be policies to assist poor and unskilled migrants to integrate fully into the modern economy in the urban areas through skill development training and education.

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Bibliographic Info

Paper provided by The World Bank in its series Policy Research Working Paper Series with number 3302.

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Date of creation: 01 May 2004
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Handle: RePEc:wbk:wbrwps:3302

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Related research

Keywords: Economic Conditions and Volatility; Environmental Economics&Policies; Urban Governance and Management; Economic Theory&Research; Regional Governance; Governance Indicators; Achieving Shared Growth; Economic Theory&Research; Economic Conditions and Volatility; Environmental Economics&Policies;

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  1. Steven N. Durlauf & Danny T. Quah, 1998. "The New Empirics of Economic Growth," NBER Working Papers 6422, National Bureau of Economic Research, Inc.
  2. Quah, Danny, 1993. "Empirical cross-section dynamics in economic growth," European Economic Review, Elsevier, vol. 37(2-3), pages 426-434, April.
  3. Kremer, Michael & Onatski, Alexei & Stock, James, 2001. "Searching for prosperity," Carnegie-Rochester Conference Series on Public Policy, Elsevier, vol. 55(1), pages 275-303, December.
  4. John Luke Gallup & Jeffrey D. Sachs & Andrew D. Mellinger, 1998. "Geography and Economic Development," Harvard Institute of Economic Research Working Papers 1856, Harvard - Institute of Economic Research.
  5. Sergio Rey & Brett Montouri, 1999. "US Regional Income Convergence: A Spatial Econometric Perspective," Regional Studies, Taylor & Francis Journals, vol. 33(2), pages 143-156.
  6. John Luke Gallup & Jeffrey D. Sachs & Andrew D. Mellinger, 1998. "Geography and Economic Development," NBER Working Papers 6849, National Bureau of Economic Research, Inc.
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Cited by:
  1. Maria ABREU & Henri L.F. DE GROOT & Raymond J.G.M. FLORAX, 2005. "Space And Growth: A Survey Of Empirical Evidence And Methods," Region et Developpement, Region et Developpement, LEAD, Universite du Sud - Toulon Var, vol. 21, pages 13-44.
  2. Maria Abreu & Henri L.F. de Groot & Raymond J.G.M. Florax, 2004. "Space and Growth," Tinbergen Institute Discussion Papers 04-129/3, Tinbergen Institute.
  3. repec:dgr:uvatin:2004129 is not listed on IDEAS

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