EFFECT ANALYSIS OF PUBLIC POLICY ON THE DEVELOPMENT OF LPAS IN MINAS GERAIS

Abstract

The objective was to analyze the effect of public policy on the development of Minas Gerais LPAs. We used data from 853 municipalities of the state, for 2005 to 2016, extracted from the bases FIRJAN and IMRS FJP. For data treatment and analysis, the Stata^® software was used. To capture this effect, a dummy fixed effects model was employed. In the municipalities belonging to LPAs benefiting from this policy, there was a positive and significant effect, indicating a 9.35% increase in development indicators. These results provide a positive signal for the continuity of the policy under analysis, or similar actions. LPAs are recognized as vectors of development largely because of their ability to enhance employment and income generation. Thus, it is understood that maintaining actions to strengthen local economies by supporting their development tends to positively imply the context in which they are inserted.