Gastos públicos municipais e crescimento econômico no Estado do Rio de Janeiro

Abstract

ABSTRACT This study aims to determine how important the public sector, through their spending, influences the growth rates of GDP (Gross Domestic Product) in the municipalities of Rio de Janeiro. Studies in this line are justified by the growth of the powers of sub-national levels of government, or fiscal decentralization. The base case relates to the decentralization more efficient provision of public goods, a fact allowed by the proximity between demand and supply of public goods. The results suggest that the public sector does not interfere with GDP growth in the cities of Rio de Janeiro. The investments were the largest category with its own momentum of economic growth and a model that included the occurrence of elections as an explanatory variable showed that election lawsuits not only affect the level of GDP, but also how it is affected by public spending. Key words Public Finance; development; cities. Classificacao JEL: O23. Artigo recebido em out. 2009 e aceito para publicacao em dez. 2010.