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Recent Productivity Growth and Regional Inequality in Brazil

Daniela Schettini and Carlos Azzoni

No 10-2013, TD NEREUS from Núcleo de Economia Regional e Urbana da Universidade de São Paulo (NEREUS)

Abstract: This paper estimates the levels and the evolution of Total Factor Productivity (TFP) across 27 regions (states) in Brazil over the 1995-2009 period, for agriculture, manufacturing and services, as well as for total production. In the aggregate, there are no signs of productivity growth in the period, in spite of the substantive TFP growth exhibited by agriculture, and the modest growth observed in manufacturing. The regional results show that productivity levels replicate the regional inequality that marked the country’s history through decades: all the states with low TFP levels belong to the poorest regions, mainly the Northeast region. Some sectoral differences are observed when analyzing regional TFP growth but, on average, high-productivity states tend to exhibit higher productivity growth. This indicates that inequality in productivity in the future tends to be even more pronounced than in the present

Keywords: total factor producitvity (TFP); regional economics; Brazil (search for similar items in EconPapers)
JEL-codes: R10 (search for similar items in EconPapers)
Pages: 29 pages
Date: 2013
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Citations: View citations in EconPapers (1)

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