DETERMINANTS OF ECONOMIC GROWTH OF THE STRATA BRAZILIAN MUNICIPALITIES: AN ANALYSIS ON A DYNAMIC PANEL
Economic growth; Panel dynamic; Economic sectors
One of the main challenges of economic science is to explain the determinants and dynamics of a country's growth, which is essential to sustain its productive capacity. the research aims to verify which variables explain the economic growth of the states of Brazil. capturing the economic situation. Bearing in mind that the Brazilian economy has a very diversified economic structure, potentialities in different sectors, shown them can direct actions that have the intention of minimizing the existing disparities. The analysis aims to explain the GDP per capita of the 146 geographic strata with a group of explanatory variables on human capital, financial system, business environment and social infrastructure, in the period 2012-2019. Therefore, to achieve the proposed objective of the research, the adopted econometric method was the dynamic panel technique estimated by Two-Step System-GMM. The main results obtained were the 146 Geographic Strata that present disparities in economic growth. In general, the groups of variables used have a positive impact on GDP per capita, Human capital variables, specifically, workers with higher education, have a positive and significant impact on GDP per capita of the strata. Thus policies and actions are extremely important in an attempt to reduce existing disparities