Agglomeration Externalities and 1981-2006 Regional Growth in Brazil
AbstractThis 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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Bibliographic InfoPaper provided by University of Waikato, Department of Economics in its series Working Papers in Economics with number 12/07.
Length: 20 pages
Date of creation: 30 Jun 2012
Date of revision:
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convergence; economic growth; knowledge externalities; Brazil;
Find related papers by JEL classification:
- C52 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Model Evaluation, Validation, and Selection
- O18 - Economic Development, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
- O31 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
- N66 - Economic History - - Manufacturing and Construction - - - Latin America; Caribbean
- R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
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