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Regional Inequality and Brazilian Constitutional Funds

Heder Oliveira () and Edson Domingues ()

ERSA conference papers from European Regional Science Association

Abstract: There is considerable evidence to demonstrate that the regional development in developing countries shows high level of spatial concentration. The aim of this paper is to analyze the Brazilian case to identify if the constitutional funds for regional development(Constitucional Funds for the North - FNO and Constitucional Funds for the Center-West - FCO) have a positive impact on the regional inequality. These funds were created in 1989 in order to finance economic activities in the North and Center-West regions. Our results show that regional growth in Brazil over the last 10 years has not been affected by these constitutional funds. On the other way, public infra-structure, education and health have a positive relation with regional growth, which suggests that the public expending on those funds should be directed to these regional attributes.

Date: 2006-08
New Economics Papers: this item is included in nep-geo
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