Municipal development indexes and petroleum royalties: a multivariable comparison approach of profiles among municipalities that receive or do not receive royalties for the petroleum they produce

Abstract

The Brazilian oil industry has achieved high growth rates and in 2006, the country’s self-sufficiency in oil was announced. From 1991 to 2011, Petrobras’ reserves grew by 164%. In the same period, Brazil passed the oil law (Law No. 9478), establishing new criteria for the transfer of oil royalties to Brazilian municipalities. Thus, this study aims to determine whether royalty payments to municipalities have improved their social indicators in perceptible ways. Therefore, a comparison between municipalities of similar population size that receive royalties and municipalities that do not receive them, was carried out. For the comparison, certain variables were used such as: IDHM, IFDM, IDEB and the incidence of poverty. We have used the techniques of Profile Analysis, Cluster Analysis and Factor Analysis in order to verify the difference between the matrices of data, both in the municipalities cities that receive royalties and in the ones that do not receive them.

Keywords

• Profile Analysis
• Factor Analysis
• Cluster Analysis
• Royalties