Coffee productivity and regional development in Brazil

Abstract

This paper aims to analyze the spatial distribution of coffee productivity as well as to investigate whether there is a convergence process among the microregions of the five largest producing states of Brazil between 2000 and 2015. In order to do this, we used exploratory spatial data analysis (ESDA) and spatial econometrics. The main result indicate that microregions with low productivity are reaching very slowly the most dynamic regions, a fact that can adversely affect the economic and social development of these localities. Finally, we discuss the impacts of this slow convergence process on regional development and highlight some policies that can promote productivity improvements.