Economic growth, income inequality and the influence of spatial phenomena
This paper used the Mankiw, Romer and Weil (1992) model, with cross-section and panel data and spatial controls, to analyze the influence of spatial phenomena on inequality and economic growth in Brazilian municipalities between 1980-2010. The results indicated that reducing spatial heterogeneity (e...
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| Format: | article |
| Status: | Published version |
| Publication Date: | 2022 |
| Country: | Brasil |
| Institution: | Universidade Federal de Santa Catarina (UFSC) |
| Repository: | Revista Geosul (Online) |
| Language: | Portuguese |
| OAI Identifier: | oai:periodicos.ufsc.br:article/74774 |
| Online Access: | https://periodicos.ufsc.br/index.php/geosul/article/view/74774 |
| Access Level: | Open access |
| Keyword: | Crescimento Econômico Desigualdade Economia Regional Econometria Espacial Dados transversais e em Painel Crecimiento económico Desigualdad Economía regiona Econometría Espacial Datos transversales y de panel Economic growth Inequality Regional Economy Spatial Econometrics Cross-sectional and Panel data |
| Summary: | This paper used the Mankiw, Romer and Weil (1992) model, with cross-section and panel data and spatial controls, to analyze the influence of spatial phenomena on inequality and economic growth in Brazilian municipalities between 1980-2010. The results indicated that reducing spatial heterogeneity (e.g.: differences in culture, preferences and natural resources) helps to combat inequalities, while the absence of spatial spillovers (from trade, technological diffusion and migration, for instance) tends to worsen it. Ignoring these spatial effects would result in underestimations of the rate of income convergence and overestimates about the returns on physical capital and human capital. Finally, being close to a “central place”, as in the case of state capitals, seems to facilitate the economic growth. |
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