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We study the relationship between public infrastructure and economic growth of Brazilianmunicipalities between 1970 and 2010. We generalize the regional economic growth model developed by Glaeser et al. (1995) incorporating public capital in the production function of firms. As municipalities are assumed to be subjected to various forms of spatial interaction, we use an econometric method capable of accommodating heterogeneity and spatial dependence between municipalities. The results suggest that access to electricity contributes positively to regional economic growth, access to sewage collection has positive effects on population growth and access to water supplies has positive impacts on per capita wage growth.

Infraestrutura pública e crescimento dos municípios brasileiros: análise espacial entre 1970 e 2010