Economic relevance of social security benefits in the cities of COREDE Celeiro/RS

Abstract

This academic article has as goal to investigate and debate regarding the economic importance of the benefitis which are paid from the Federal Social Security in the income of the brazilian counties, especially in the small ones. It is assumed from the premise that  in the local framework the theorical fundamentals are quite different from the national macroeconomy, because it is an open economy for excellence, with free flow of assets, services, incomes, capital and production factors. For such approach, it was epigraphated the theories of the Exporter Base, the Economic Base and the proposition of Kohler with emphasis in the endogeneity of the currency in the territory and in the diferentiation between Product and Income. Taking in count the metodological framework. It is about an exploratory, bibliographic and quantitative reasearch with the estatistic treatment of the oficial data from the COREDE Celeiro/RS Region, which is composed of 21 counties, each one with less than 25000 inhabitants. As result, it was observed the relative quantity of the social security benefits on the composition of the Municipal Income, beyond the strong correlation, in special, between these public transferences and the tertiary sector in the sample counties.

Key-Words: Municipal Income. Economic Base Theory. Currency Endogeneity. Social Security Benefits. Regional Development.