Over the last decades, the Brazilian agricultural and livestock sector has presented several changes, both in terms of public policies and of the technological aspect. This article examines the economic growth, as well as the convergence of farmer's income Brazilian states, from 1986 to 2004. An econometric model of fixed effects is used, controlling spatial effects. In addition to proving conditional convergence, the econometric model revealed that the growth in per capita GDP for the agricultural and livestock sector was affected by variables such as agricultural physical capital, telecommunication infrastructure, storage infrastructure, rural credit, rural workers and spatial externalities. Furthermore, this paper highlights the importance of R & D investments for growth and convergence of per capita income in agricultural and livestock sector.
income convergence; agricultural and livestock sector; fixed effect model with spatial dependence
