Convergence of per capita GDP in Brazil: an empirical note

Abstract

The article investigated the convergence of real gross domestic product (GDP) per capita at the state level in Brazil during the 1985–1999 period. Departures across states were evaluated in terms of panel data unit root tests advanced by Im et al . (2003). The evidence indicated that one cannot reject the null hypothesis of unit root for the (log) of the ratio of GDP of each state relative to a reference unit. The results, therefore, favour a very strong form of persistence for regional inequality.