Socioeconomic impact of investments from the federal highway concession program in the state of Santa Catarina

Abstract

This study aims to evaluate whether federal highway concessions in Brazil have brought significant socioeconomic benefits to the population of neighboring municipalities. The impact of two highway concessions in the state of Santa Catarina was assessed, covering 28 of the 293 municipalities existing in the state in 2012. Propensity Score Matching and Difference-in-differences techniques were used to calculate the impact that the concessions had on Gross Domestic Product (GDP) and the Firjan Municipal Development Index (IFDM) of municipalities served by federal highways under concession, between 2007 and 2012. The results suggest that there was no significant impact on GDP caused by the concession. The average impact on the IFDM variable was significant, approximately 4.5%, and less developed municipalities were more positively affected by participation in the program.