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Regional diversification in Brazil: the role of relatedness and complexity

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  • Mariane Santos Françoso
  • Ron Boschma
  • Nicholas Vonortas

Abstract

The paper contributes to the growing literature on the relationship between relatedness, complexity and regional diversification. It explores regional diversification in an emerging economy, focusing on diversification opportunities of regions with distinct levels of local capabilities. We investigate the importance of relatedness and economic complexity for sectoral and technological diversification in all regions of Brazil during the period 2006-2019. Regions tend to diversify in sectors/technologies requiring similar capabilities to those already available locally. In general, the higher the sector/technology complexity, the lower the probability of diversification. However, in high-complex regions, complexity reverses into a positive force for diversification. Our analysis shows catching-up and diversification prospects vary widely across different types of regions in Brazil.

Suggested Citation

  • Mariane Santos Françoso & Ron Boschma & Nicholas Vonortas, 2022. "Regional diversification in Brazil: the role of relatedness and complexity," Papers in Evolutionary Economic Geography (PEEG) 2206, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised Feb 2022.
    • Handle: RePEc:egu:wpaper:2206
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    More about this item

    Keywords

    regional diversification; relatedness; complexity; emerging economies; Brazil;
    All these keywords.

    JEL classification:

    • O25 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - Industrial Policy
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives

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