CONSIDERAÇÕES SOBRE O IMPACTO DOS FUNDOS CONSTITUCIONAIS DE FINANCIAMENTO DO NORTE E DO CENTRO-OESTE NA REDUÇÃO DA DESIGUALDADE REGIONAL NO BRASIL

There is considerable evidence to demonstrate that the regional development in developing countries shows high level of spatial concentration. The aim of this paper is to analyze the Brazilian case to identify if the Brazilian constitutional funds (FNO and FCO) have a positive impact on the regional inequality. These funds have been created in 1989 in order to finance economic activities in the North and Northeast regions. Our results show that regional growth in Brazil over the last 10 years has not been affected by these constitutional funds. On the other way, public infra-structure, education and health have a positive relation with regional growth, which suggests that the public expending on those funds should be directed to these regional attributes.