Productive efficiency and the future of regional disparities in Brazil

Abstract

We use Stochastic Production Frontiers to estimate the recent levels and the evolution of productive efficiency across regions in Brazil. Results are available for agriculture, industry and services, as well as for total production. We observe a substantive efficiency growth exhibited by agriculture at the national level, which is counterbalanced by the poor performance of services. The regional results show that efficiency levels still replicate, in general, the regional inequality that marked the country’s history through decades. However, the efficiency growth reveals new signs of convergence among states, especially for industry, with effects on the aggregate production. This indicates that inequality trends in productive efficiency may be starting to change.

Clubes de convergência e drivers de catching-up dos municípios brasileiros 2000-2010

“…As políticas governamentais de investimentos estruturantes e os programas sociais de estímulo à demanda da primeira década do século XXI podem ter pressionado a geração de infraestrutura e, com isso, reduzido uma das principais fontes de desigualdade regional do país. Contudo, a factibilidade dessa política é insustentável com o novo cenário de crise fi scal do país Azzoni, 2018).…”