Credit and economic growth: evidence from a panel of regional data from the brazilian economy in the 2000

Resumen

In this article the relationship between credit and economic growth is approached from a regional point of view. As credit is very unevenly distributed among regions of the country, we will use a simple econometric model to investigate the relationship between credit and GDP, and credit and labor productivity in the 2000s. It is confirmed that the credit for the Southern and Southeastern regions has a greater effect on GDP growth and the growth of labor productivity than for other regions. These effects are also estimated considering the credit via the National Bank for Economic and Social Development (BNDES) and the Constitutional Funds.