#2564. Financing choice and local economic growth: evidence from Brazil

January 2027publication date
Proposal available till 30-05-2025
4 total number of authors per manuscript4500 $

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Journal’s subject area:
Economics and Econometrics;
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Abstract:
The article explores how the financing of non-traditional local activities, considered here as an indicator of diversification of activities, is associated with economic growth. The results show that financing of non-traditional local activities is associated with faster economic growth of municipalities, which indicates a positive external effect between the non-traditional and traditional sectors. The results also show that it is precisely because of the dependence of the non-traditional sector on the traditional sector that municipalities must resume their traditional activities in unfavorable conditions.
Keywords:
Activity diversification; Economic growth; Finance-growth nexus; Financial development

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