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Regional Inequality and Brazilian Constitutional Funds

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  • Heder Oliveira
  • Edson Domingues

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.

Suggested Citation

  • Heder Oliveira & Edson Domingues, 2006. "Regional Inequality and Brazilian Constitutional Funds," ERSA conference papers ersa06p546, European Regional Science Association.
    • Handle: RePEc:wiw:wiwrsa:ersa06p546
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    File URL: https://www-sre.wu.ac.at/ersa/ersaconfs/ersa06/papers/546.pdf
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    1. Murphy, Kevin M & Shleifer, Andrei & Vishny, Robert W, 1989. "Industrialization and the Big Push," Journal of Political Economy, University of Chicago Press, vol. 97(5), pages 1003-1026, October.
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