A INFLUÊNCIA DO GASTO PER CAPITA SOBRE A DINÂMICA EMPRESARIAL DOS MUNICÍPIOS DO ESTADO DE MINAS GERAIS

Abstract

This study will examine the behavior of municipal per capital spending in total and in terms of 17 categories using clusters of municipalities in the State of Minas Gerais. It will also seek to evaluate which categories of per capita spending can be considered determinant in increases (positive variations) of the number of businesses operating in these municipalities. Based on a research sample composed of company data and per capita spending for 848 municipalities in Minas Gerais, this study employs cluster analysis and conducts a linear regression which indicates that practically all of the spending categories were significant in the composition of the 4 clusters identified in this study, with the only exception being “agrarian reform and colonization”. It may be noted that the spending that falls under “other activities” was greater in comparison with the overall total than the constitutionally mandated spending on “health” and “education”. We also found that the linear combination of the independent variables formed by per capita spending on “agrarian reform and colonization”, “sanitation”, “cultural diffusion” and “economic development” was significant in explaining the positive variation in the number of businesses created in 433 municipalities out of a total of 462 municipalities investigated in Minas Gerais. Thus, even though it is still exploratory, this scientific investigation makes it possible to conclude that the decisions made in terms of the objectives of municipal spending are more important than the decisions made about the overall amount to be spent.