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Spatial Dependence and Regional Convergence in Brazil

Author(s): André Magalhães | Geoffrey J.D. Hewings | Carlos R. Azzoni

Journal: Investigaciones Regionales
ISSN 1695-7253

Issue: 6;
Start page: 5;
Date: 2005;
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Keywords: Industrial Location | Wage Gradient | Spanish Economic History.

The present paper introduces some spatial econometric techniques tothe convergence issue among Brazilian states. State data over the 1970-95 period areconsidered to explore previous results that suggested convergence. As in the US case,strong patterns of spatial correlation are found during the period. The spatial econometricanalysis reveals that spatial error dependence seems to be present resulting inthe potential for model misspecification. The results indicate that, although someconvergence among states is taking place, it seems to be more of regional phenomenaor perhaps some type of club convergence than a global convergence process. Stateslike São Paulo dominate the first group while the Northeast states form a secondgroup or club.
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