Spatially Unbalanced Growth and Regional Economic Inequalities in Brazil: A Long-Run Perspective

The objective of this article is to analyze the evolution of Brazilian regional economic inequalities in the long-run. The theoretical basis is the "spatially unbalanced growth," approach largely influenced by Albert Hirschman and Nicholas Kaldor's perspectives. I examine data from 1900 at the national level, analyzing GDP growth, investment rate, and manufacturing share. Using data on GDP at the subnational level (Brazilian regions and states), I calculated the Coefficients of Variation and Williamson from 1939 to 2010. Based on this movement, I propose an interpretation of the evolution of Brazilian regional economic inequalities that considers national economic dynamics, institutional and structural changes, as well as the role of regional policies. I concluded that the tendencies of increasing regional inequalities until 1970 and their subsequent decrease, as well as their recent propensity to stabilization, are related to a cumulative causation trajectory of these drivers.