Convergence, Dynamics, and Geography of Economic Growth: The Case of Municipalities in Rio Grande do Norte, Brazil
Analyses of municipal GDP growth in Rio Grande do Norte in the Northeast of Brazil during 1970-96 reveal that the cross-section dispersion of per capita income increased over time. Although the analysis indicates some spatial dependence in income,...
| Main Authors: | , |
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| Format: | Policy Research Working Paper |
| Language: | English en_US |
| Published: |
World Bank, Washington, D.C.
2013
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| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/2004/05/4265044/convergence-dynamics-geography-economic-growth-case-municipalities-rio-grande-norte-brazil http://hdl.handle.net/10986/14085 |
| Summary: | Analyses of municipal GDP growth in Rio
Grande do Norte in the Northeast of Brazil during 1970-96
reveal that the cross-section dispersion of per capita
income increased over time. Although the analysis indicates
some spatial dependence in income, it is small and has a
downward trend, indicating that the growth path is only
weakly determined by geographical links in Rio Grande do
Norte. Moreover, dynamic analyses based on the Markov chain
transition matrix show that the probability of a
municipality moving from a poor income class to a rich class
is very small and vice-versa. Municipalities located in the
middle-income class have high mobility, but there is no
strong evidence indicating direction. Public policy should
include assisting the rural families by providing them
education and training that increases their opportunities
for employment. There should also be policies to assist poor
and unskilled migrants to integrate fully into the modern
economy in the urban areas through skill development
training and education. |
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