The The impact of the Northeast Constitutional Financing Fund (FNE) on the growth of municipalities: a dynamic panel application

• Autor(a) principal: Cambota, Jacqueline Nogueira
• Data de Publicação: 2019
• Outros Autores: Viana, Luiz Fernando Gonçalves
• Tipo de documento: Artigo
• Idioma: por
• Título da fonte: Revista Controle (Online)
• Texto Completo: https://revistacontrole.tce.ce.gov.br/index.php/RCDA/article/view/472
• topic: Crescimento Econômico. FNE. Desigualdade Regional.; Economic Growth. FNE. Regional Inequality.

This work estimates economic growth models of the municipalities in the Northeast Financing Constitutional Fund (FNE) area to verify if that policy has impact on these municipalities between 2003 and 2014. To that end, it will use a dynamic panel model for the panel data that solves two common inconsistency sources observed in a growth model: i) the lagged dependent variable; and ii) endogenous dependent variable. The result indicates the existence of the absolute and conditional convergence of the municipalities’ GDP per capita in the FNE area. Positive and significant effects of the FNE were found for the majority of the estimate models and the most important political contribution was found when the FNE effects were estimated as contemporaneously endogenous. The results of the estimates show that the endogeneity of the FNE/GDP variable must be controlled to obtain more reliable estimates of the policy impact on the GDP per capita growth of municipalities.