ECONOMIC GROWTH OF MINAS GERAIS, 1980-2000: A QUANTILE REGRESSION APPROACH

Resumo

We run quantile regressions to verify if the fast-growing municipalities in Minas Gerais state react differently to the slow-growing ones with respect to the initial level of income and to other explanatory variables between 1980 and 2000. Our results show that higher human capital, higher urbanization rates, better social infra-structure and lower infant mortality rates are related to higher economic growth rates. All results show evidence that the quantile coefficients are not significantly different from the OLS results. These results imply that conditional convergence cannot be denied in the case of municipalities of the Minas Gerais state.