Petroleum Royalties (Postali)

Petroleum royalties and regional development in Brazil: The economic growth of recipient towns by Fernando A. Slaibe Postali published by Resources Policy (03/2009). “In 1997, Brazil approved law n 9478, establishing new rules for sharing petroleum royalties with Brazilian municipalities. The goal of this paper is to evaluate whether royalties distributed under the new law have contributed for the development of benefited municipalities… Results are surprising showing that royalty receivers grew less than municipalities that did not receive such resources. The difference is small but statistically significant. In general, an increase of one real in royalties per capita reduces the growth rate of the munucipal product in 0.002 percentile points” See PDF Attached