The study analyses the convergence or not of the counties of the state of Rio Grande do Sul to a same level of income per capita. It also examines variables associated with the economic growth of the counties, such as the regional location, the participation of the economic sectors and the agrarian structure. The perspectives of regional economic growth in the State are promising. In the long run the percentage of counties with income per capita above the State average would increase from 28% to 52%. The effect of the industrial and services sectors upon the growth of income is greater than that of the agricultural sector, with the exception in the State’s Norwest region. But the agricultural sector is important for the counties economic growth because, besides its direct effect, its contribution also occurs through the industrial and services sectors related to agriculture such as rubber, tobacco, leather, shoes, food, beverages and retail sales. Income grows at higher rates in the regions where the smaller farms are predominant.


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