2014-10-02
guilherme_interna
The Brazilian researcher Guilherme Mendes Rezende, from the Institute of Applied Economic Research (IPEA), presented a paper at the 54th Congress of the European Regional Science Association (ERSA) in St. Petersburg, Russia, to share the findings of his study “The impact of Brazilian regional development funds on regional economic growth: a spatial approach”. The study assesses the economic impacts of funding from Brazil’s constitutional funds for the Northeast (FNE), North (FNO) and the Centre-west (FCO). The ERSA Congress is one of the most important international forums for the exchange of experiences in economics and regional development.
Sponsored by the EU-Brazil Sector Dialogues Support Facility, which is jointly coordinated by the Ministry of Planning, Budget and Management (MPOG) and the European Union Delegation in Brazil (Delbra), in its first stage the study surveyed the impact of CF loans on the growth of gross domestic product (GDP) per capita between 2004 and 2010.
"Estimates suggest that the CFs have had a positive impact on GDP per capita growth in municipalities. They also indicate that different forms of regional development funds (rural, industrial and trade / services) affect regional growth in different ways," said Mr. Rezende.
Established in 1989, the constitutional financing funds are intended to contribute to the economic and social development of the North, Northeast and Centre-west regions, through the implementation of funding programmes for productive sectors through federal financial institutions of a regional nature. "They are the main instrument of regional policy in Brazil," he said.
The study is being prepared by Mr. Rezende and researcher Túlio Cravo, in a partnership with the Ministry of National Integration, and is part of the sector dialogue on regional integration policies. In addition to assessing regional funds, the study will also seek to look into the state of the art in this field in the European Union, so as to enable a comparative analysis with that in Brazil.
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