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Promoção do Setor Financeiro como Estratégia de Desenvolvimento Regional – O Caso do Nordeste Brasileiro


  • Alexandre Rands Barros

    () (Universidade Federal de Pernambuco)


The paper relies on cross section county data within the period 2000 and 2007 to test two major hypotheses: (i) Finance development contributes to economic growth in Northeast, as it does nationally and even internationally; and (ii) there is some bias against Northeastern counties in decisions to install bank branches. The tests rely on Barro and Sala-i-Martin standard growth regressions. The results confirm the two hypotheses. In addition, the paper argues that policies to foster finance development within the region could contribute to reduce regional inequalities in Brazil. The most obvious policy suggested is to eliminate the bias on braches installations. Other policies, such as regionally discriminatory taxes on loans and reserves requirements, are also pointed as ways to contribute to foster growth in poorer counties and to reduce regional inequalities.

Suggested Citation

  • Alexandre Rands Barros, 2009. "Promoção do Setor Financeiro como Estratégia de Desenvolvimento Regional – O Caso do Nordeste Brasileiro," Working Papers 51, Datamétrica Consultoria Econômica, revised 2009.
  • Handle: RePEc:dtm:wpaper:51

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    Bank agency; regional inequality; financial system.;

    JEL classification:

    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes


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