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Spatial externalities between Brazilian municipios and their neighbours

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Author Info
Philippe De Vreyer () (DIAL, Paris)
Gilles Spielvogel () (DIAL, Paris)

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Abstract

Clustering of economic performance and growth in space has generated considerable research on the spillovers and linkages among geographical neighbours. In this paper, we study the growth process of a large sample of Brazilian municipalities for the period 1970-1996 and attempt to evaluate the spatial externalities at work among them. We estimate the convergence speed of per capita income among municipios and test whether spatial externalities are linked to local income growth. Conditionally on structural characteristics, we find evidence of convergence between municipios and of positive spatial dependence in growth. These two facts could help explain the persistent inequalities between municipios and the increasing clustering of poor localities in the Northeast region.

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Publisher Info
Paper provided by Ibero-America Institute for Economic Research in its series Ibero America Institute for Econ. Research (IAI) Discussion Papers with number 123.

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Length: 27 pages
Date of creation: 21 Oct 2005
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Handle: RePEc:got:iaidps:123

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Keywords: Local growth convergence spatial externalities spatial econometrics Brazil

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Find related papers by JEL classification:
O40 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General
R11 - Urban, Rural, and Regional Economics - - General Regional Economics - - - Analysis of Growth, Development, and Changes
R12 - Urban, Rural, and Regional Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)

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  1. Carlos R. Azzoni, 2001. "Economic growth and regional income inequality in Brazil," The Annals of Regional Science, Springer, vol. 35(1), pages 133-152. [Downloadable!] (restricted)
  2. Goldsmith, William W. & Wilson, Robert, 1991. "Poverty and distorted industrialization in the Brazilian Northeast," World Development, Elsevier, vol. 19(5), pages 435-455, May. [Downloadable!] (restricted)
  3. Enrique López-Bazo & Esther Vayá & Manuel Artís, 2004. "Regional Externalities And Growth: Evidence From European Regions," Journal of Regional Science, Blackwell Publishing, vol. 44(1), pages 43-73. [Downloadable!] (restricted)
  4. Quah, Danny T, 1997. " Empirics for Growth and Distribution: Stratification, Polarization, and Convergence Clubs," Journal of Economic Growth, Springer, vol. 2(1), pages 27-59, March. [Downloadable!] (restricted)
  5. Magrini, Stefano, 2004. "Regional (di)convergence," Handbook of Regional and Urban Economics, in: J. V. Henderson & J. F. Thisse (ed.), Handbook of Regional and Urban Economics, edition 1, volume 4, chapter 62, pages 2741-2796 Elsevier. [Downloadable!] (restricted)
  6. D Quah, 1996. "Convergence," CEP Discussion Papers 0290, Centre for Economic Performance, LSE. [Downloadable!]
  7. Anselin, Luc & Bera, Anil K. & Florax, Raymond & Yoon, Mann J., 1996. "Simple diagnostic tests for spatial dependence," Regional Science and Urban Economics, Elsevier, vol. 26(1), pages 77-104, February. [Downloadable!] (restricted)
  8. Ferreira, Afonso, 2000. "Convergence in Brazil: Recent Trends and Long-Run Prospects," Applied Economics, Taylor and Francis Journals, vol. 32(4), pages 479-89, March. [Downloadable!] (restricted)
  9. Quah, Danny, 1997. "Empirics for Growth and Distribution: Stratification, Polarization, and Convergence Clubs," CEPR Discussion Papers 1586, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
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    Other versions:
    • Edward L. Glaeser & Hedi D. Kallal & Jose A. Scheinkman & Andrei Shleifer, 1991. "Growth in Cities," NBER Working Papers 3787, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  11. 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. [Downloadable!]
  12. Andrade, Eduardo & Laurini, Marcio & Madalozzo, Regina & Valls Pereira, Pedro L., 2004. "Convergence clubs among Brazilian municipalities," Economics Letters, Elsevier, vol. 83(2), pages 179-184, May. [Downloadable!] (restricted)
    Other versions:
  13. Mossi, Mariano & Aroca, Patricio & Fernandez, Ismael & Azzoni, Carlos, 2002. "Growth dynamics and space in Brazil," ERSA conference papers ersa02p499, European Regional Science Association. [Downloadable!]
  14. Somik V. Lall & Zmarak Shalizi, 2003. "Location and Growth in the Brazilian Northeast," Journal of Regional Science, Blackwell Publishing, vol. 43(4), pages 663-681. [Downloadable!] (restricted)
  15. Sergio J. Rey, Brett D. Montouri, 1999. "US Regional Income Convergence: A Spatial Econometric Perspective," Regional Studies, Taylor and Francis Journals, vol. 33(2), pages 143-156, April. [Downloadable!] (restricted)
  16. Shorrocks, Anthony F, 1984. "Inequality Decomposition by Population Subgroups," Econometrica, Econometric Society, vol. 52(6), pages 1369-85, November. [Downloadable!] (restricted)
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