Talent Allocation and Economic Growth in the Brazilian States: 1999 to 2007
Name: VICTOR NUNES TOSCANO
Publication date: 31/03/2011
Advisor:
Name |
Role |
|---|---|
| ROBSON ANTONIO GRASSI | Advisor * |
Examining board:
| Name |
Role |
|---|---|
| ROBSON ANTONIO GRASSI | Advisor * |
Summary: This work studies the effects of the allocation of talent on the economic growth of states. Analyses were based on the seminal contributions of Murphy, Shleifer and Vishny (1991) on the theme, WHERE they present theoretical and empirical arguments that the allocation of talent in entrepreneurial activities affects positively the economic growth, while the allocation of talent in rent seeking activities affect it negatively. To empirically test this hypothesis, we used annual data from 1999 to 2007, GDP growth per capita and the number of engineers and lawyers formally employed in each state to represent the entrepreneurial activities and rent seeking, respectively. We apply the traditional estimators of cross section of pooling and the method proposed by Arellano and Bond's equation to estimate income convergence for the states. The results show that there is convergence of income, 1% confidence for the Brazilian states with the estimates using panel data reaching speeds of convergence significantly higher. When we control the estimates for the variables of the number of engineers and lawyers for each 100 thousand habitants, there is an increase of three percentage points in the convergence speed and stability of states using the method of Arellano and Bond. Importantly, the estimated coefficients for the variable of engineers showed statistically significant and positive sign indicating, at first a positive relationship with the process of economic growth of states, while the coefficients related to the variable of lawyers did not show robust results. Key words: Allocation of talent, Income Convergence, Entrepreneurship, Rent seeking.
