Economic Growth And Convergence of Regional Income: New Evidence On The Brazilian Case
Carlos Roberto Azzoni
University of Sao Paulo (USP) - Department of Economics
The paper presents an analysis of regional income inequalities in Brazil for the period 1939-1990, based on a data set arranged by the author. Traditional measures of inequality, such as the dispersion of per capita income, are presented together with other measures commonly used in the New Theory of Growth literature. There is no evidence of convergence in Brazil for the whole period; it can be observed only in the sub-period 1970-1990. There are strong signs of increasing divergence within the poorer regions of the country simultaneously with increasing convergence within the richer regions. The "inverted U" or "bell shaped" curve hypothesis was tested but no evidence was found to support it. Convergence and divergence within Brazilian regions do not seem to be related to the regional level of per capita income. Some possible explanations for the observed results are presented.
JEL Classification: N16, N36
Date posted: July 17, 1997
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