Spatially Unbalanced Growth and Regional Economic Inequalities in Brazil: A Long-Run Perspective

Abstract

The objective of this article is to analyze the evolution of Brazilian regional economic inequalities in the long-run. The theoretical basis is the “spatially unbalanced growth,” approach largely influenced by Albert Hirschman and Nicholas Kaldor’s perspectives. I examine data from 1900 at the national level, analyzing GDP growth, investment rate, and manufacturing share. Using data on GDP at the subnational level (Brazilian regions and states), I calculated the Coefficients of Variation and Williamson from 1939 to 2010. Based on this movement, I propose an interpretation of the evolution of Brazilian regional economic inequalities that considers national economic dynamics, institutional and structural changes, as well as the role of regional policies. I concluded that the tendencies of increasing regional inequalities until 1970 and their subsequent decrease, as well as their recent propensity to stabilization, are related to a cumulative causation trajectory of these drivers.

Keywords:

• spatially unbalanced growth
• regional inequalities
• Brazil
• regional development

JEL Classification Codes:

• R11
• R12
• R58

Notes

1 See https://datahelpdesk.worldbank.org/knowledgebase/articles/906519,

Additional information

Notes on contributors

Humberto Martins

Humberto Martins is Professor at the Federal University of Uberlândia, Institute of Economics and International Relations. Part of this article was developed when the author was a Visiting Scholar at University of Cambridge, Department of Land Economy and presented as seminars at University of Cambridge and at University of Milan, as well at Federal University of Uberlândia. The author is grateful to people who debated and made suggestions at these events. The author also thanks Peter Tyler, Pedro Loureiro, Germano Mendes de Paula, and Gary Dymski for their comments on a preliminary version, and two anonymous referees.