Education and Development : A spatial-econometric approach on spatial change and permanence in southern Brazil

Abstract: The Brazilian state of Paraná exhibits a violent geography of inequality and duality, hosting both the most developed city in the country, internationally recognized by its urban and environmental innovations, and southern Brazil’s most concentrated cluster of poverty and underdevelopment. Over the course of the past decades, the state underwent a major economic transformation, modernizing and increasing its industrial structure and shifting to the service sector with a larger participation of the knowledge economy. This study is concerned on the interplay between formal education and socioeconomic development during this process, and above all its spatial character. It attempts make sense of the rich literature on education and growth and/or development, discussing it through the lenses of human geography and planning. In order for the analysis to be possible, this study created a consistent database of municipal scores of education over the course of 40 years, dealing with changing census methodologies and municipal boundaries. Making use of modern exploratory spatial data analysis combined with spatial regressions, the study identifies a clustered, time-persistent interplay between education and development that is stronger for low and basic levels of education. Moreover, it provides evidence that not only education is a predictor of future development, but also that analyses of this kind must take into consideration spatial autocorrelation in order to be accurate.