Local economic impacts of Stellantis plant location in Goiana, Pernambuco: a quasi-experimental difference-in-differences analysis
DOI:
https://doi.org/10.24302/drd.v16.6049Abstract
This study investigates the economic impacts of the installation of the Stellantis (Jeep) plant in Goiana, Pernambuco, inaugurated in 2015. Using the Difference-in-Differences method, with Belo Jardim as the control municipality, data are analyzed from 2012, the year construction began. The results show a significant increase in Goiana’s per capita GDP, with growth exceeding 900% and an estimated average impact of R$ 26,027.20, placing the municipality in the state lead in 2017. There was also an increase in the average income of formal workers (R$ 177.62) and the creation of approximately 6,000 additional jobs, with a net positive balance of 1,264 positions. Regarding tax revenue, IPI and ICMS collections grew by R$ 101,939.10 and R$ 24.9 million, respectively. The event study analysis indicates that positive effects consolidated from the third year of operation. Compared to Belo Jardim, there is clear evidence of a significant change in Goiana’s economic trajectory, attributed to the installation of the automotive plant.
Keywords: regional development; automotive industry; difference-in-differences; Goiana-PE.
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