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Measuring Micro- and Macro-Impacts of Regional Development Policies: The Case of the Northeast Regional Fund (FNE) Industrial Loans in Brazil, 2000--2006

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  • Guilherme M. Resende

Abstract

Resende G. M. Measuring micro- and macro-impacts of regional development policies: the case of the Northeast regional fund (FNE) industrial loans in Brazil, 2000--2006, Regional Studies . This paper formulates a framework to measure the micro- and macro-impacts of regional development policies in Brazil using the first-differences method that controls for observable characteristics and unobserved fixed effects. Next, it applies this framework to measure the impact of the Northeast regional fund (FNE) industrial loans on employment and labour productivity growth at the micro- (firm) level and on gross domestic product (GDP) per capita growth at macro- (municipalities, micro-regions and spatial clusters) levels for the 2000--2003 and 2000--2006 periods. The results show a positive and statistically significant impact of the FNE industrial loans on job creation at the micro-level but no significant impacts on the GDP per capita growth at the macro-level.

Suggested Citation

  • Guilherme M. Resende, 2014. "Measuring Micro- and Macro-Impacts of Regional Development Policies: The Case of the Northeast Regional Fund (FNE) Industrial Loans in Brazil, 2000--2006," Regional Studies, Taylor & Francis Journals, vol. 48(4), pages 646-664, April.
  • Handle: RePEc:taf:regstd:v:48:y:2014:i:4:p:646-664
    DOI: 10.1080/00343404.2012.667872
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    References listed on IDEAS

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    1. Joshua D. Angrist & Jörn-Steffen Pischke, 2009. "Mostly Harmless Econometrics: An Empiricist's Companion," Economics Books, Princeton University Press, edition 1, number 8769.
    2. Timothy J. Bartik & Richard D. Bingham, 1997. "Can Economic Development Programs be Evaluated?," Book chapters authored by Upjohn Institute researchers, in: Richard D. Bingham & Robert Mier (ed.), Dilemmas of Urban Economic Development, pages 246-290, W.E. Upjohn Institute for Employment Research.
    3. Shahidur R. Khandker & Gayatri B. Koolwal & Hussain A. Samad, . "Handbook on Impact Evaluation : Quantitative Methods and Practices," World Bank Publications, The World Bank, number 2693, September.
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    Cited by:

    1. Guilherme Resende & Tulio Cravo & Alexandre Carvalho, 2014. "The Impact of Brazilian Regional Development Funds on Regional Economic Growth: A spatial panel approach," ERSA conference papers ersa14p123, European Regional Science Association.
    2. Soares, Ricardo Brito & Linhares, Fabrício Carneiro & Gonçalves, Marcos Falcão & Viana, Luiz Fernando Gonçalves, 2014. "Brazil’s Northeast Financing Constitutional Fund: Differentiated effects on municipal economic growth," Revista CEPAL, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), August.

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