Physical and Human Capital and Brazilian Regional Growth: A Spatial Econometric Approach for the Period 1970–2010

Ricardo Andrade Lima and Raul Silveira Neto ()

Regional Studies, 2016, vol. 50, issue 10, 1688-1701

Abstract: Carvalho R. and Silveira Neto R. Physical and human capital and Brazilian regional growth: a spatial econometric approach for the period 1970–2010, Regional Studies. This paper identifies the determinants of economic growth and analyses the dynamics of income using a panel of 522 Brazilian micro-regions for period 1970–2010. Based on the spatial extension of the Mankiw–Romer–Weil (MRW) model and explicitly considering both physical and human capital, the parameters of a Spatial Durbin Model (SDM) with fixed-effects are estimated. The direct and indirect impacts of the determinants of regional growth are then calculated. The results indicate strong spatial dependence among Brazilian micro-regions and that investments in both physical and human capital are important for the growth of the Brazilian regional economies.

Date: 2016
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Working Paper: PHYSICAL AND HUMAN CAPITAL AND BRAZILIAN REGIONAL GROWTH: A SPATIAL ECONOMETRIC APPROACH FOR THE PERIOD 1970-2010 (2016)
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DOI: 10.1080/00343404.2015.1053447

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