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The tertiary sector and regional inequality in Brazil

Carlos R. Azzoni, Alexandre S. Andrade

Azzoni, Carlos R., and Alexandre S. Andrade. "The Tertiary Sector and Regional Inequality in Brazil." In TD Nereus, edited by Núcleo de Economia Regional e Urbana da Universidade de São Paulo. São Paulo: Universidade de São Paulo, 2005.

Abstract: This paper analyses the role of tertiary activities in regional inequality in Brazil, considering both concentration and per capita income inequality. The estimated indicators reveal that for the most sophisticated sub-sectors, the richer regions are not only above average in terms of competitiveness, but are widening the gap to poor regions over time. The analysis indicates that spatial concentration and growth are not associated, in general. Regressions were estimated between per capita income growth and initial income levels, indicating that only a sub-set of activities presented regional income convergence. By correlating convergence with concentration and concentration changes, only very weak associations were found.