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Income convergence among Brazilian states after the economic openness in the 1990s

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  • Maria Alice Móz Christofoletti
  • Humberto Francisco Silva Spolador

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    Abstract

    This paper expands the analysis developed by Ellery Jr. (1994), who estimated the income convergence among Brazilian states from 1970 to 1990. The methodology is based on the convergence model proposed by Barro and Sala-i-Martin (1992) and is applied to test both the beta-convergence and the sigma-convergence. For the period after 1990, and sub-periods, the effects of educational level (used as a proxy for human capital), and international trade on the increase of income states were estimated. The preliminary results show that even after the economic openness in 1990s, the income convergence process has not changed compared to the first period previously analyzed (1970-1990) among the 27 Brazilian states and this process has been still ongoing (0.79% per year) to the recent years.

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    Bibliographic Info

    Paper provided by European Regional Science Association in its series ERSA conference papers with number ersa10p172.

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    Date of creation: Sep 2011
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    Handle: RePEc:wiw:wiwrsa:ersa10p172

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    1. S. Dobson & C. Ramlogan, 2002. "Economic Growth and Convergence in Latin America," Journal of Development Studies, Taylor & Francis Journals, Taylor & Francis Journals, vol. 38(6), pages 83-104.
    2. Paul M Romer, 1999. "Increasing Returns and Long-Run Growth," Levine's Working Paper Archive 2232, David K. Levine.
    3. Sala-i-Martin, Xavier, 1995. "The Classical Approach to Convergence Analysis," CEPR Discussion Papers, C.E.P.R. Discussion Papers 1254, C.E.P.R. Discussion Papers.
    4. 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.
    5. Afonso Ferreira, 2000. "Convergence in Brazil: recent trends and long-run prospects," Applied Economics, Taylor & Francis Journals, Taylor & Francis Journals, vol. 32(4), pages 479-489.
    6. Carlos R. Azzoni, 2001. "Economic growth and regional income inequality in Brazil," The Annals of Regional Science, Springer, Springer, vol. 35(1), pages 133-152.
    7. Fernando Garcia & Jorge Oliveira Pires, 2004. "Productivity of Nations: a stochastic frontier approach to TFP decomposition," Econometric Society 2004 Latin American Meetings, Econometric Society 292, Econometric Society.
    8. Dowrick, Steve, 1992. "Technological Catch Up and Diverging Incomes: Patterns of Economic Growth 1960-88," Economic Journal, Royal Economic Society, Royal Economic Society, vol. 102(412), pages 600-610, May.
    9. Pedro Jucá Maciel & Joaquim Andrade & Vladimir Kuhl Teles, 2005. "Convergência Regional Revisitada: Uma Análise Em Equilíbrio Geral Para O Brasil," Anais do XXXIII Encontro Nacional de Economia [Proceedings of the 33th Brazilian Economics Meeting], ANPEC - Associação Nacional dos Centros de Pósgraduação em Economia [Brazilian Association of 127, ANPEC - Associação Nacional dos Centros de Pósgraduação em Economia [Brazilian Association of Graduate Programs in Economics].
    10. Lucas, Robert Jr., 1988. "On the mechanics of economic development," Journal of Monetary Economics, Elsevier, Elsevier, vol. 22(1), pages 3-42, July.
    11. Nicolino Trompieri Neto & Ivan Castelar & Fabrício Cameiro Linhares, 2008. "Convergência de Renda dos Estados Brasileiros: Uma Abordagem de Painel Dinâmico com Efeito Threshold," Anais do XXXVI Encontro Nacional de Economia [Proceedings of the 36th Brazilian Economics Meeting], ANPEC - Associação Nacional dos Centros de Pósgraduação em Economia [Brazilian Association of G 200807212130050, ANPEC - Associação Nacional dos Centros de Pósgraduação em Economia [Brazilian Association of Graduate Programs in Economics].
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