The efficiency of public expenditure in the municipalities of santa Catarina, Brazil: An approach with dynamic panel data model

The main objective of this study is to understand the impact that public spending, carried out by municipalities in the south of Santa Catarina (SC), has on economic growth. The study considered the efficiency of municipal spending on the region’s product and productive infrastructure in its analysis. Despite the theme being relevant in matters of efficiency in public management, there was a scarcity and inexistence of studies in Brazil and Santa Catarina. The ordinary least squares method was used for comparison purposes, obtaining the panel data approach. The results show no impact of spending on GDP, despite the municipality region. On the other hand, the type of productive activity in each municipality seems to influence the efficiency of public spending on the product of Santa Catarina cities. Public spending on health brought higher returns than education, and legislation and special charges were also significant.