Socioeconomic impacts of the sucroenergy sector in Paraíba

a panel data analysis for 2005-2016

Abstract

ABSTRACT

The article analyzes the socioeconomic impact of the sugar and ethanol sector in the state of Paraíba in the period 2005-2016. Four regression models with panel data were used for analysis. The dependent variable was the FIRJAN Consolidated Municipal Development Index (IFDM) and its variations for education, health, employment and income, respectively. In addition, a dummy variable was used to capture the direct or indirect impact of the sector on the municipalities which supply the plants. The following independent variables were considered: planted area, quantity produced, population density and added value of the services sector. The results show that the sector positively affect employment and income of those municipalities. On the other hand, the impact would be negative on health and education. Consequently, the negative impact was also observed considering the Consolidated IFDM. These results suggest that employment and income gains employment and income gains associated with the sector’s production would not be enough to raise municipal and family investments in health and education. Of course, recognizing the limitations of this study, other research is necessary for the state of Paraíba in order to corroborate or not its results.

Keywords: Regional Development. Sugar-Energy Sector. Panel Data.