Gastos Públicos e Crescimento Econômico: um Recorte para Pernambuco entre de 2008 e 2015

Abstract

The purpose of this work consists in analyzing the relation between the variables which comprise public expenditure and the GDP of the cities in Pernambuco through the years 2008 to 2015. The estimated model used a Fixed Effects panel, with per capita data at the municipal level in the Pernambuco State in relation to education, culture, health care, and sanitation. In general, it can be concluded that the per capita expenditure in education was directly related to economic growth, corroborating previous studies found in the national literature. However, there was no positive relation between GDP and variables such as health care, sanitation, public housing, and urbanism. Regional differences between federative units in a continental country, and institutional issues, may justify these results.