Convergence of the agricultural GDP per capita of the Brazilian states

Abstract

The present work tests the hypothesis of convergence for the deviations of the agricultural GDP of the Brazilian states. In addition, we aim to provide an indicative for the speed with which growth rates of agricultural GDP converge to a steady state. To do so, we use a set of estimates to correct possible biases arising from the economic procedures used. The results obtained as half-lives indicate that the deviations of the agricultural GDP of the Brazilian states take, on average, about 1 year to reach the distance between the current value and the level of equilibrium. Furthermore, it was found that the greatest half-life is obtained when the state of Piauí is used as numeraire, and the lowest in the case of the state of Bahia being used.