This article analyzed the growth of per capita income in the counties of Minas Gerais, between 1991-2000, using the MRW (1992) model with control for health conditions and robust against spatial effects. The results indicated that income converges between 1.03% and 1.70% per annual. However, the models without spatial controls tend to overvalue this result. Only the model with spillovers and spatial regimes was able to eliminate the spatial autocorrelation, revealing the existence of convergence clubs and a greater impact of physical capital when compared to human capital and health conditions. Moreover, there was a strong "neighborhood effect" and a positive relationship between the stock of physical capital and the impact of human capital on income.
Spatial Econometrics; Regional Economics; Economic Growth Models
