Crescimento econômico e convergência de renda no estado de Pernambuco: uma aplicação da teoria dos regimes múltiplos de crescimento econômico

Abstract

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.