Brazil’s economic growth has significantly increased the size of its’ middle class, also called class C. Among, the many factors that are allowing this phenomenon to happen, the Internet is relevant since it opens doors and gives new opportunities to a group that for decades have been in the outskirts of society. There is extensive literature that links the Internet to growth and development. The Solow Growth Model supports this idea since technological change spurs growth to a new steady-state, allowing higher purchase power and better living standards. Due to the nature of the model causality problems were a possibility. Hence, the current study utilized the Structural Equation Modeling (SEM) adapted from Roeller and Waverman’s study to solve for endogeneity.
Includes bibliographical references.