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Agglomeration Externalities and 1981-2006 Regional Growth in Brazil

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  • Valente J. Matlaba

    ()
    (University of Waikato)

  • Mark Holmes

    ()
    (University of Waikato)

  • Philip McCann

    ()
    (University of Groningen)

  • Jacques Poot

    ()
    (University of Waikato)

Abstract

This paper focuses on manufacturing employment growth across the 26 states of Brazil. We employ the Glaeser et al. (1992) approach to identify the role played by knowledge externalities in growth and convergence. To assess robustness of the results, we compare cross-section models, dynamic panel models and pooled-periods fixed-effect models. We find that cross-section models confirm the positive impact of Porter’s and Jacobs’ competition externalities on growth, whereas dynamic panel models and pooled-periods fixed-effect models are consistent with the predictions of Marshall-Arrow-Romer and Porter regarding the role of specialisation in manufacturing vis-à-vis other employment. The results provide new insights into the rapid growth since 1981 in particularly the North and Centre West of Brazil.

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File URL: ftp://mngt.waikato.ac.nz/RePEc/wai/econwp/1207.pdf
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Bibliographic Info

Paper provided by University of Waikato, Department of Economics in its series Working Papers in Economics with number 12/07.

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Length: 20 pages
Date of creation: 30 Jun 2012
Date of revision:
Handle: RePEc:wai:econwp:12/07

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Keywords: convergence; economic growth; knowledge externalities; Brazil;

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References

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  1. Combes, Pierre-Philippe, 2000. "Economic Structure and Local Growth: France, 1984-1993," Journal of Urban Economics, Elsevier, vol. 47(3), pages 329-355, May.
  2. Paul M Romer, 1999. "Increasing Returns and Long-Run Growth," Levine's Working Paper Archive 2232, David K. Levine.
  3. Carlos A. Azzoni & Naercio Menezes-Filho & Tatiana de Menezes & Raúl Silveira-Neto, 2000. "Geography and Income Convergence among Brazilian States," Research Department Publications 3096, Inter-American Development Bank, Research Department.
  4. Marcelo de Paiva Abreu, 1998. "The Brazilian economy, 1928-1945," Textos para discussão 388, Department of Economics PUC-Rio (Brazil).
  5. Raul Silveira-Neto & Carlos R. Azzoni, 2006. "Location and regional income disparity dynamics: The Brazilian case," Papers in Regional Science, Wiley Blackwell, vol. 85(4), pages 599-613, November.
  6. Daumal, Marie & Zignago, Soledad, 2010. "Measure and determinants of border effects of Brazilian states," Economics Papers from University Paris Dauphine 123456789/7446, Paris Dauphine University.
  7. Henri L.F. de Groot & Jacques Poot & Martijn J. Smit, 2008. "Agglomeration Externalities, Innovation and Regional Growth: Theoretical Perspectives and Meta-Analysis," Working Papers in Economics 08/01, University of Waikato, Department of Economics.
  8. Carlos R. Azzoni, 2001. "Economic growth and regional income inequality in Brazil," The Annals of Regional Science, Springer, vol. 35(1), pages 133-152.
  9. Marcelo de Paiva Abreu, 2005. "The Brazilian economy, 1980-1994," Textos para discussão 492, Department of Economics PUC-Rio (Brazil).
  10. 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.
    • Glaeser, Edward Ludwig & Kallal, Hedi D. & Scheinkman, Jose A. & Shleifer, Andrei, 1992. "Growth in Cities," Scholarly Articles 3451309, Harvard University Department of Economics.
  11. Henderson, Vernon & Kuncoro, Ari & Turner, Matt, 1995. "Industrial Development in Cities," Journal of Political Economy, University of Chicago Press, vol. 103(5), pages 1067-90, October.
  12. Barbosa, Fernando de Holanda, 1989. "Macroeconomia," Economics Working Papers (Ensaios Economicos da EPGE) 138, FGV/EPGE Escola Brasileira de Economia e Finanças, Getulio Vargas Foundation (Brazil).
  13. Mossi, Mariano & Aroca, Patricio & Fernandez, Ismael & Azzoni, Carlos, 2002. "Growth dynamics and space in Brazil," ERSA conference papers ersa02p499, European Regional Science Association.
  14. Afonso Ferreira, 2000. "Convergence in Brazil: recent trends and long-run prospects," Applied Economics, Taylor & Francis Journals, vol. 32(4), pages 479-489.
  15. Francesca Mameli & Alessandra Faggian & Philip McCann, 2008. "Employment Growth in Italian Local Labour Systems: Issues of Model Specification and Sectoral Aggregation," Spatial Economic Analysis, Taylor & Francis Journals, vol. 3(3), pages 343-360.
  16. 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.
  17. Guilherme Mendes Resende, 2011. "Multiple dimensions of regional economic growth: The Brazilian case, 1991−2000," Papers in Regional Science, Wiley Blackwell, vol. 90(3), pages 629-662, 08.
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