INDUSTRY AND ECONOMIC DEVELOPMENT OF THE BRAZILIAN REGIONS: REVISITING "NATURAL" DEINDUSTRIALIZATION HYPOTHESIS WITH MUNICIPAL DATA (1999-2011)

Abstract

This paper investigates the “natural” de-industrialization hypothesis in Brazil, aiming to evaluate the existence and implications of the “U-inverted” relationship between employment and product industrial participation and per capita income municipalities, segmented into geographical regions. For this, they are performed econometric estimates by panel with fixed effects and Tobit panel. The results suggest four important and consistent evidences with the literature hypotheses about the subject: the occurrence of the “U-inverted” relationship between the degree of industrialization and per capita income level; the loss of employment industrial participation in a lower income level to product industrial decrease point; the reduction of product industrial participation in less developed regions in per capita income levels lower than those observed in the Southeast (more developed region); the increase in the relative importance of the service sector to the detriment of industry.