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Economic growth and sectoral convergence in the Sudene coverage area: The impact of tax incentives

Author

Listed:
  • Felipe Bastos

    (Universidade Federal do Ceará, Departamento de Teoria Econômica, Fortaleza, CE, Brazil | Universidade Federal do Ceará, Centro de Pós-Graduação em Economia, Fortaleza, CE, Brazil)

  • Georgeana da Silveira

    (Universidade Federal do Ceará, Campus Sobral, Sobral, CE, Brazil)

  • Antônio Lucas Melo

    (Universidade Federal do Ceará, Centro de Pós-Graduação em Economia, Fortaleza, CE, Brazil)

  • Marleton Braz

    (Universidade Federal do Ceará, Centro de Pós-Graduação em Economia, Fortaleza, CE, Brazil)

  • Kelly de Vasconcelos

    (Universidade Federal do Ceará, Centro de Pós-Graduação em Economia, Fortaleza, CE, Brazil)

  • Jean Silveira

    (Universidade Federal do Ceará, Faculdade de Economia, Administração, Atuária e Contabilidade, Fortaleza, CE, Brazil)

  • Guilherme Irffi

    (Universidade Federal do Ceará, Centro de Pós-Graduação em Economia, Fortaleza, CE, Brazil)

Abstract

This paper explores the relationship between economic growth and tax incentives, while verifying the hypothesis of convergence in SUDENE's coverage area. Results indicate that tax incentives positively and significantly affect productivity growth at municipal level, both in the aggregate and in industrial sectors, and at state level, in the aggregate and in the sectors of services and public administration. As for convergence, there is municipal and state -convergence in the aggregate and in the sectors of industry, services, and public administration. -convergence is found at municipal and state levels in the aggregate and in all sectors. Jel Classification: O47; O25; C33.

Suggested Citation

  • Felipe Bastos & Georgeana da Silveira & Antônio Lucas Melo & Marleton Braz & Kelly de Vasconcelos & Jean Silveira & Guilherme Irffi, 2026. "Economic growth and sectoral convergence in the Sudene coverage area: The impact of tax incentives," Brazilian Journal of Political Economy, FGV EAESP, vol. 46(3), pages 263637-2636, August.
    • Handle: RePEc:ekm:repojs:v:46:y:2026:i:3:id:98989
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