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This paper is makes an analysis of the process of convergence of income betweenthe municipalities of the Minas Gerais (Brazil) in the period of 1980 to 2005, trying to identifythe existence of clubs of convergence using a model threshold. Results indicated for theformation of four clubs of convergence, among them shows a process of convergence betweenthe all clubs. Human capital proved to be significant in explaining the process of growth of theintermediate groups of municipalities richer. The results also indicated that the physical capitalwas significantly negative for explaining the process of economic growth of most rich clubs ofconvergence, demonstrating in this way, a negative role for public investment undertaken in thedistricts of the region.

Keywords: Income Convergence ; Threshold Effect ; Minas Gerais (Brazil)

Subject(s): Community/Rural/Urban Development

Research Methods/ Statistical Methods

Issue Date: 2010

Publication Type: Working or Discussion Paper

PURL Identifier: Page range: 1-21

Total Pages: 21

JEL Codes: R11

Series Statement: Working Papers on Applied Economics


Record appears in: Universidade Federal de Vicosa > Departamento de Economia Rural > Working Papers in Applied Economics

Autor: Santos, Ricardo Bruno Nascimento dos ; Amorim, Airton Lopes ; Coronel, Daniel Arruda ; Braga, Marcelo Jose


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