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Location and Growth in the Brazilian Northeast

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  • Somik V. Lall
  • Zmarak Shalizi

Abstract

Clustering of economic performance across jurisdictions has generated considerable research on the spillovers and linkages among geographical neighbors. Much of this work, however, has been aspatial, implying that the influence of location attributes on growth has been largely ignored. In this paper, we examine the contribution of location to regional economic growth using municipio-level data for the Brazilian Northeast-a historically lagging region of the country. We test if productivity among northeastern municipios is converging to a steady state and whether spatial externalities are linked to productivity growth in individual municipios. We find that, conditional on structural characteristics, productivity among municipios is converging at about 3 percent per year. Further, productivity in individual municipios is positively associated with own-structural characteristics but negatively associated with productivity growth in neighboring municipios. This means that there are negative spatial externalities coming from productivity improvements in neighboring regions. Copyright Blackwell Publishing, Inc. 2003

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Bibliographic Info

Article provided by Wiley Blackwell in its journal Journal of Regional Science.

Volume (Year): 43 (2003)
Issue (Month): 4 ()
Pages: 663-681

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Handle: RePEc:bla:jregsc:v:43:y:2003:i:4:p:663-681

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Cited by:
  1. Emmanuel Skoufias & Gladys Lopez-Acevedo, 2009. "Latin America - Determinants of Regional Welfare Disparities within Latin American Countries : Country Case Studies," World Bank Other Operational Studies 3051, The World Bank.
  2. Carvalho, Alexandre & Lall, Somik V. & Timmins, Christopher, 2006. "Regional subsidies and industrial prospects of lagging regions," Policy Research Working Paper Series 3843, The World Bank.
  3. Guilherme Mendes Resende & Tulio A. Cravo, 2014. "What about regions in regional science? A convergence exercise using different geographic scales of European Union," Economics Bulletin, AccessEcon, vol. 34(3), pages 1381-1395.
  4. Julie Le Gallo & Sandy Dall’erba, 2005. "Spatial And Sectoral Productivity Convergence Between European Regions, 1975-2000," ERSA conference papers ersa05p191, European Regional Science Association.
  5. Emmanuel Skoufias & Gladys Lopez-Acevedo, 2009. "Latin America - Determinants of Regional Welfare Disparities within Latin American Countries : Synthesis," World Bank Other Operational Studies 3048, The World Bank.
  6. Maria ABREU & Henri L.F. DE GROOT & Raymond J.G.M. FLORAX, 2005. "Space And Growth: A Survey Of Empirical Evidence And Methods," Region et Developpement, Region et Developpement, LEAD, Universite du Sud - Toulon Var, vol. 21, pages 13-44.
  7. Philippe De Vreyer & Gilles Spielvogel, 2005. "Spatial externalities between Brazilian municipios and their neighbours," Working Papers DT/2005/11, DIAL (Développement, Institutions et Mondialisation).
  8. Guilherme Resende & Tulio Cravo, 2013. "What about regions in regional science? An exercise of convergence using different geographic scales of European Union," ERSA conference papers ersa13p772, European Regional Science Association.
  9. repec:dgr:uvatin:2004129 is not listed on IDEAS
  10. Guilherme Mendes Resende & Alexandre Xavier Ywata de Carvalho & Patrícia Alessandra Morita Sakowski, 2013. "Evaluating Multiple Spatial Dimensions of Economic Growth in Brazil Using Spatial Panel Data Models (1970 - 2000)," Discussion Papers 1830a, Instituto de Pesquisa Econômica Aplicada - IPEA.
  11. Emiliano Giudici & André Mollick, 2008. "Convergence in the Eastern Caribbean States," The Annals of Regional Science, Springer, vol. 42(4), pages 893-909, December.
  12. Julie LE GALLO (IERSO, IFReDE-GRES) & Sandy DALL’ERBA (REAL, University of Illinois at Urbana-Champaign), 2004. "Evaluating the Temporal and the Spatial Heterogeneity of the European Convergence Process, 1980-1999," Cahiers du GRES 2004-23, Groupement de Recherches Economiques et Sociales.
  13. Habibullah, M.S. & Dayang-Afizzah, A.M., 2008. "Bordering neighbours: Testing for border effect on Malaysia's northern states and Southern Thailand," MPRA Paper 12103, University Library of Munich, Germany.
  14. Philippe De Vreyer & Sandrine Mesplé-Somps & Gilles Spielvogel, 2005. "Spatial externalities between Brazilian municipios and their neighbours," ERSA conference papers ersa05p573, European Regional Science Association.
  15. Maria Abreu & Henri L.F. de Groot & Raymond J.G.M. Florax, 2004. "Space and Growth," Tinbergen Institute Discussion Papers 04-129/3, Tinbergen Institute.

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