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Spatial externalities between Brazilian municipios and their neighbours

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  • Philippe De Vreyer

    ()
    (DIAL, Paris)

  • Gilles Spielvogel

    ()
    (DIAL, Paris)

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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Bibliographic 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
Date of revision:
Handle: RePEc:got:iaidps:123

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Keywords: Local growth; convergence; spatial externalities; spatial econometrics; Brazil;

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  1. Magalhães, André & Hewings, Geoffrey J.D. & Azzoni, Carlos R., 2005. "Spatial Dependence and Regional Convergence in Brazil," Investigaciones Regionales, Asociación Española de Ciencia Regional, issue 6, pages 5-20.
  2. Somik V. Lall & Zmarak Shalizi, 2003. "Location and Growth in the Brazilian Northeast," Journal of Regional Science, Wiley Blackwell, vol. 43(4), pages 663-681.
  3. Quah, Danny, 1997. "Empirics for Growth and Distribution: Stratification, Polarization, and Convergence Clubs," CEPR Discussion Papers 1586, C.E.P.R. Discussion Papers.
  4. Mossi, Mariano & Aroca, Patricio & Fernandez, Ismael & Azzoni, Carlos, 2002. "Growth dynamics and space in Brazil," ERSA conference papers ersa02p499, European Regional Science Association.
  5. Shorrocks, Anthony F, 1984. "Inequality Decomposition by Population Subgroups," Econometrica, Econometric Society, vol. 52(6), pages 1369-85, November.
  6. Sergio Rey & Brett Montouri, 1999. "US Regional Income Convergence: A Spatial Econometric Perspective," Regional Studies, Taylor & Francis Journals, vol. 33(2), pages 143-156.
  7. 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.
  8. 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.
  9. Carlos R. Azzoni & Luciana M.S. Servo, 2002. "Education, cost of living and regional wage inequality in Brazil," Review of Economic Design, Springer, vol. 81(2), pages 157-175, 04.
  10. Glaeser, Edward Ludwig & Kallal, Hedi D. & Scheinkman, Jose A. & Shleifer, Andrei, 1992. "Growth in Cities," Scholarly Articles 3451309, Harvard University Department of Economics.
  11. Carlos R. Azzoni, 2001. "Economic growth and regional income inequality in Brazil," The Annals of Regional Science, Springer, vol. 35(1), pages 133-152.
  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.
  13. Enrique López-Bazo & Esther Vayá & Manuel Artís, 2004. "Regional Externalities And Growth: Evidence From European Regions," Journal of Regional Science, Wiley Blackwell, vol. 44(1), pages 43-73.
  14. 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.
  15. Goldsmith, William W. & Wilson, Robert, 1991. "Poverty and distorted industrialization in the Brazilian Northeast," World Development, Elsevier, vol. 19(5), pages 435-455, May.
  16. Afonso Ferreira, 2000. "Convergence in Brazil: recent trends and long-run prospects," Applied Economics, Taylor & Francis Journals, vol. 32(4), pages 479-489.
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