Industrial Clusters and Economic Performance in Brazil
AbstractIndustrial clusters, which are commonly targeted to receive financial support allocated to locally based development projects, are seen as an effective industrial policy tool for improving productivity and generating employment. Nevertheless, identifying clusters and assessing their economic performance is a challenge for policymakers. This paper aims to address this challenge by identifying the location of clusters based on neighbor relationships and specialization in Brazil and providing some insights on their effects on employment generation. The paper uses both Location Quotient and Local Indicator of Spatial Association to identify potential clusters in 27 industrial sectors in 5564 Brazilian municipalities. In addition, it uses annual municipal panel data for 2006-2009 to assess whether the presence of potential clusters is correlated with employment generation. The results show that clusters located in municipalities whose neighbors have similar industrial structures perform better than those that present industry specialization only.
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Bibliographic InfoPaper provided by Inter-American Development Bank, Office of Evaluation and Oversight (OVE) in its series OVE Working Papers with number 0513.
Date of creation: Oct 2013
Date of revision:
Industrial cluster; regional economic development; spatial independence;
Other versions of this item:
- Jose Claudio Linhares Pires & Tulio Cravo & Simon Lodato & Caio Piza, 2013. "Industrial Clusters and Economic Performance in Brazil," IDB Publications 83486, Inter-American Development Bank.
- C0 - Mathematical and Quantitative Methods - - General
- R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
- R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
This paper has been announced in the following NEP Reports:
- NEP-ALL-2013-11-22 (All new papers)
- NEP-CSE-2013-11-22 (Economics of Strategic Management)
- NEP-EFF-2013-11-22 (Efficiency & Productivity)
- NEP-GEO-2013-11-22 (Economic Geography)
- NEP-LAM-2013-11-22 (Central & South America)
- NEP-SBM-2013-11-22 (Small Business Management)
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