Transport infrastructure investment and regional inequalities in Brazil: an Analysis of the impacts of the Growth Acceleration Program (PAC)

Vol. 36 No. 4 (2016)

Oct-Dec / 2016
Published October 1, 2016
PDF-Portuguese (Pt-BR)
PDF-Portuguese (Pt-BR)

How to Cite

Costa da Silva, Guilherme Jonas, Humberto Eduardo de Paula Martins, and Henrique Dantas Neder. 2016. “Transport Infrastructure Investment and Regional Inequalities in Brazil: An Analysis of the Impacts of the Growth Acceleration Program (PAC)”. Brazilian Journal of Political Economy 36 (4), 840-63. https://doi.org/10.1590/0101-31572016v36n04a10.

Transport infrastructure investment and regional inequalities in Brazil: an Analysis of the impacts of the Growth Acceleration Program (PAC)

Guilherme Jonas Costa da Silva
Professor Adjunto do Instituto de Economia e Tutor do Grupo PET Economia da Universidade Federal de Uberlândia.
Humberto Eduardo de Paula Martins
Professor Associado do Instituto de Economia da Universidade Federal de Uberlândia.
Henrique Dantas Neder
Professor Titular do Instituto de Economia da Universidade Federal de Uberlândia.
Brazilian Journal of Political Economy, Vol. 36 No. 4 (2016), Oct-Dec / 2016, Pages 840-863

Abstract

The article analyses the effects of investments in infrastructure – in particular regarding transport sector carried out under the Growth Acceleration Program (PAC) – on the Brazilian regional dynamics.The hypotheses investigated in the study are: (i) infrastructure investments have contributed to the economic growth of the Brazilian states; (ii) PAC’s infrastructure investments have helped to increase the economic growth rates of the Brazilian states, (iii) PAC’s infrastructure investments have changed the dispersion of economic growth rates between states, in favor of poorer states. We employ the methodology of panel data for the estimates and Bootstrapping for predictions. The empirical results only confirmed the first hypotheses, but not the last two ones, indicating that the PAC has not contributed significantly to amplify the average rate of growth of GDP per capita at state level; and also that PAC has not contributed to reduce regional inequalities. 

JEL Classification: H54; O40; C53.


Keywords: Transports Infrastructure, Regional Development, Growth Acceleration Program (PAC), Panel Data, bootstrapping, Brazil