The economy of the State of Minas Gerais (BR) in a changing world: Technological gap and recente dilemas

Abstract

The aim of this paper is to analyze the implications for Minas Gerais of its specialization in commodities and products of low technological intensity, against the backdrop of an international context in rapid productive transformation. To this end, based on a presentation of the characteristics of the economy of Minas Gerais from the 2000s onwards, we tested the hypothesis whether firms and sectors of greater technological intensity have the capacity to boost the state's economy more effectively, based on the premise that these companies generate a higher salary mass than those linked to other economic activities in Minas Gerais. Econometric results reinforce and confirm the hypothesis that the most technologically advanced firms pay a higher wage premium, inducing a positive effect on economic activity in general. The database used and the period analyzed for the economy of Minas Gerais, except for better judgement, have not yet been tested.

Keywords:
Natural resources; regional rconomics; Minas Gerais; structural change