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The Regional Question in Brazil: Nature, Causes and Policies

  • Alexandre Rands Barros

    ()

    (Universidade Federal de Pernambuco)

This paper presents an overview of the nature of the Brazilian Regional inequalities, focusing on some basic statistics and recent estimations that indicate that it arises mainly from differences on individual endowments (human capital) in the many regions, rather than on differences on the income captured by individual valuable attributes. It also reviews the major hypotheses to explain the inequalities and presents an alternative view, which argues that there is an equilibrium with inequalities that persists along time. Historical features of the colonial settlements in each region justified the original differences in their human capital. The paper then reviews the major regional policies applied in Brazil, hitherto, and evaluates them on the light of the hypothesis forwarded. The conclusion is that, as they did not tackle the major cause of inequalities, they end up generating limited results.

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File URL: ftp://200.249.56.210/RePEc/dtm/wpaper/The_Regional_Question_in_Brazil50.pdf
File Function: Revised version, 2009
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Paper provided by Datamétrica Consultoria Econômica in its series Working Papers with number 50.

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Length: 24 pages
Date of creation: 2009
Date of revision: 2009
Publication status: Published in Anais do VIII Encontro Nacional da Associação Brasileira de Estudos Regionais e Urbanos.
Handle: RePEc:dtm:wpaper:50
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  1. Joanna Alexopoulos & Tiago V. de V. Cavalcanti, 2006. "Cheap Home Goods And Persistent Inequality," Anais do XXXIV Encontro Nacional de Economia [Proceedings of the 34th Brazilian Economics Meeting] 165, ANPEC - Associação Nacional dos Centros de Pósgraduação em Economia [Brazilian Association of Graduate Programs in Economics].
  2. Alexandre Rands Barros, 2011. "Desigualdades Regionais no Brasil: Natureza, causas, origens e soluções," Working Papers 63, Datamétrica Consultoria Econômica, revised 2011.
  3. Lucas, Robert Jr., 1988. "On the mechanics of economic development," Journal of Monetary Economics, Elsevier, vol. 22(1), pages 3-42, July.
  4. Edward L. Glaeser & Joshua D. Gottlieb, 2009. "The Wealth of Cities: Agglomeration Economies and Spatial Equilibrium in the United States," Journal of Economic Literature, American Economic Association, vol. 47(4), pages 983-1028, December.
  5. Rodrik, Dani & Subramanian, Arvind & Trebbi, Francesco, 2002. "Institutions Rule: The Primacy of Institutions Over Geography and Integration in Economic Development," CEPR Discussion Papers 3643, C.E.P.R. Discussion Papers.
  6. Daron Acemoglu & Simon Johnson & James A. Robinson, 2001. "The Colonial Origins of Comparative Development: An Empirical Investigation," American Economic Review, American Economic Association, vol. 91(5), pages 1369-1401, December.
  7. Galor, Oded & Zeira, Joseph, 1988. "Income Distribution and Macroeconomics," MPRA Paper 51644, University Library of Munich, Germany, revised 01 Sep 1989.
  8. Alexandre Rands & Cristiane Mesquita Soares, 2009. "The Role Of Social Capital On Individual Labor Incomes In Brazil," Working Papers 33, Datamétrica Consultoria Econômica, revised 2009.
  9. Roback, Jennifer, 1982. "Wages, Rents, and the Quality of Life," Journal of Political Economy, University of Chicago Press, vol. 90(6), pages 1257-78, December.
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