Investigaciones Regionales - Journal of Regional Research (Jun 2005)

Spatial Dependence and Regional Convergence in Brazil

  • André Magalhães,
  • Geoffrey J.D. Hewings,
  • Carlos R. Azzoni

Journal volume & issue
no. 6
pp. 5 – 20

Abstract

Read online

The present paper introduces some spatial econometric techniques tothe convergence issue among Brazilian states. State data over the 1970-95 period areconsidered to explore previous results that suggested convergence. As in the US case,strong patterns of spatial correlation are found during the period. The spatial econometricanalysis reveals that spatial error dependence seems to be present resulting inthe potential for model misspecification. The results indicate that, although someconvergence among states is taking place, it seems to be more of regional phenomenaor perhaps some type of club convergence than a global convergence process. Stateslike São Paulo dominate the first group while the Northeast states form a secondgroup or club.

Keywords