THE PRODUCTIVITY GROWTH OF BRAZILIAN NORTHEAST MUNICIPALITIES AND THE SPATIAL ISSUE: THE COMMON SPATIAL FACTORS HYPOTHESYS

Abstract

This work has as main objective test the productivity convergence hypothesis among the northeast municipalities, taking account of his spatial spillover and the production factors dependence across their neighborhood. We applied the same strategy of Lall and Shalizi (2003), but we have also considered formal and informal sectors with Demographic Census data (1991, 2000, 2010). The results point out a positive effect between productivity growths: the neighborhood productivity growth benefited the municipality. In addition, the estimated Spatial Durbin econometric model confirms the common factors hypothesis: the neighborhood competing with the municipality for the production factors due their scarcity in the region.