The impacts of public financing on the GDP of the municipalities of the north, northeast, and midwest of Brazil[O impacto do financiamento público sobre o PIB dos municípios do norte, nordeste e centro-oeste do Brasil]

This article analyzed the effects of the disbursements from the Constitutional Financing Funds on the level and growth of the GDP of the municipalities of the North, Northeast, and Midwest regions of Brazil. We used spatial econometrics to identify possible evidence of spatial and temporal spillovers. The models were selected using Moran’s I test for the residuals of the regressions, followed by Lagrange Multiplier tests—robust LM for spatial error and spatial-lag processes. The tests indicated that the SDEM model was appropriate for the regression analysis on the level and growth rates. The low values and the statistical significance of the coefficients suggest that the impacts are of minor importance, with no time or spatial spillovers