Gastos públicos e crescimento econômico: evidências da economia cearense

Abstract

The article aims to explain the relationship between public spending on economic growth, bringing a literature review and an analysis of the influence of some expenditure on economic growth in the municipalities of Ceará. Such expenses would be with: health and sanitation; urbanization and housing, funding and legislative staff. Still using information on physical capital and human capital, by municipality of Ceará. For this analysis, we use a sample of 122 of the 184 municipalities in Ceará from 2002 to 2009, in a dynamic approach according to Arellano and Bond (1991). And as a theoretical model, we adopted an extension of the production function of Barro (1990). Its goal is just to try to find municipalities in Ceará, what types of expenses would be influencing its economic growth. We conclude that the increases in physical capital and human capital have contributed to higher growth in the municipalities of Ceará. It should be noted that the impact of human capital is higher than that obtained via growth of physical capital. In this sense, public policies aimed at increasing education have greater impact on increasing the product than those that only affect output growth with an increase in physical capital. Spending on health and sanitation, and have no legal relationship with the product. Since the cost of housing and urban development, costing and staff had a positive impact on GDP per capita.