Do agribusiness and mineral extraction in Minas Gerais reproduce economic growth with income inequality?

Abstract

The productive sectors of agribusiness and mining are perceived as potential generators of economic development in the regions where they predominate. Throughout history, the municipalities of Minas Gerais have invested heavily in the production and commercialization of agricultural and mineral commodities highly demanded by world economies. However, the economic growth generated may contrast with socioeconomic issues, given the possibility of income inequality in such municipalities. In this scenario, this research was guided by the following question: do municipalities in Minas Gerais with predominant agribusiness and mineral extraction activities reproduce economic growth with income inequality? The objective of the study was to analyze the behavior of income concentration in municipalities with a relevant share of agribusiness and mining in Minas Gerais, comparing them with municipalities in Minas Gerais with low representation in these sectors. To this end, descriptive statistics methods, Pearson’s correlation test and Student t-test were used, applied to secondary data. Among other findings, the study identified that municipalities in Minas Gerais with predominant agribusiness and mineral extraction activities reproduce less pronounced income inequality compared to municipalities with low representation in these sectors, however, they are less sensitive to the process of reducing the concentration of income over time. The inputs collected by this research can contribute to other fields with scenarios similar to that of Minas Gerais and be a comparison parameter for regions with different characteristics from those on which this research focuses.