According to Matos et al. (2013)Matos, P., Vasconcelos, J., & Penna, C. (2013). Política creditícia no Brasil: o sertão vai virar mar? Economia (Anpec), 14:1-129 credit policy in Brazil has been discriminatory and strongly characterized by a regional bias. We address this issue by aiming to identify Brazilian cross-state credit drivers. Methodologically we follow Matos (2017)Matos, P. R. F. (2017). On the Latin American Credit Drivers. Emerging Markets Finance and Trade, 53(2):306-320. by proposing a panel model to estimate relationships between real per capita Brazilian household credit and a set of relevant social, economic and financial variables. Our main findings considering all federal subnational entities during the period from 2004 to 2013 suggest that demand for credit plays a more relevant role than the supply thereof. Our evidence may be useful in writing theoretical models dealing with credit patterns in Brazil.
Keywords:
Household credit; Panel data; Poverty; Per capita income; Gini index; Years of schooling