(2021-12-17) Souza Neto, Euclides Grigório dos Santos; Lima, Sergiany da Silva; http://lattes.cnpq.br/5314745114599013
The work aims to analyze the economic growth and per capita income convergence model of
the Pernambuco municipalities in the period 2000 to 2010. The employed method consists of a
Threshold Regression of the conditional convergence. Growth regimes are determined by nonconcave changes in the aggregate production function, identified by trehsold variables of the
unobservable reproducible capital stock. The results suggest a picture of persistent sub-regional
inequalities in the state of Pernambuco. Municipalities with advanced economies are
concentrated in a group of small participants, in which the capital stock, given the sensitivity of
exogenous investment shocks, tends to converge. In the backward group, there is a composition
formed by large numbers of cities, where given the circumstance that their capital stock is
smaller than that of the advanced group, it has less sensitivity to investment and human capital
shocks. Such information leads us to believe that policies to encourage investment in
reproducible capital that do not cover cities equally create inequalities between municipalities.
