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Related variety and employment growth: a spatial dynamic model for Brazilian microregions

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  • Gabriel Dias da Silva
  • Eduardo Gonçalves
  • Inácio Fernandes de Araújo Junior

Abstract

This paper assesses the effects of economic externalities on the local employment growth in the Brazilian microregions. We present new evidence of the effects of industrial related variety, unrelated variety and productive specialization on regional performance for a developing country. We use a comprehensive labour market database covering the period between 1996 and 2016 for 558 microregions and an econometric method that includes both the temporal and spatial elements in the analysis, by means of a spatial dynamic panel estimated by a generalized method of moments (GMM) system. The results suggest that local employment growth is positively influenced by related industrial variety however, it is not related to unrelated variety. Este artículo evalúa los efectos de las externalidades económicas sobre el crecimiento del empleo local en las microrregiones brasileñas. Se presenta nueva evidencia de los efectos de la variedad, la variedad no relacionada y la especialización productiva relacionadas con la industria en el desempeño regional de un país en desarrollo. Se usa una base de datos completa del mercado laboral que abarca el período 1996–2016 para 558 microrregiones y un método econométrico que incluye en el análisis tanto los elementos temporales como los espaciales, haciendo uso de un panel espacial dinámico estimado mediante un método de los momentos generalizado (MMG) . Los resultados sugieren que el crecimiento del empleo local está influenciado positivamente por la variedad industrial relacionada; sin embargo, no está relacionado con la variedad no relacionada. 本稿では、ブラジルの小地域における雇用増加に対する経済外部性の影響を評価する。我々は、発展途上国の地域の実績に対する、産業関連の多様性、産業と関連のない多様性、生産特化、以上の効果の新たなエビデンスを提示する。1996年~2016年の558の小地域に関する包括的な労働市場のデータベースと、一般化モーメントシステムで推定した空間的動態パネルにより、時間的要素と空間的要素を分析に含める計量経済学的手法を用いる。結果から、地域の雇用増加は産業関連の多様性に正の影響を受けるが、産業に関連しない多様性には関連がないことが示された。

Suggested Citation

  • Gabriel Dias da Silva & Eduardo Gonçalves & Inácio Fernandes de Araújo Junior, 2020. "Related variety and employment growth: a spatial dynamic model for Brazilian microregions," Regional Science Policy & Practice, Wiley Blackwell, vol. 12(1), pages 105-123, February.
    • Handle: RePEc:bla:rgscpp:v:12:y:2020:i:1:p:105-123
    DOI: 10.1111/rsp3.12185
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    Cited by:

    1. Thomas Ejdemo & Daniel Örtqvist, 2021. "Exploring a leading and lagging regions dichotomy: does entrepreneurship and diversity explain it?," Journal of Innovation and Entrepreneurship, Springer, vol. 10(1), pages 1-26, December.
    2. Ren Lu & Qing Song & Ting Xia & Daguo Lv & Torger Reve & Ze Jian, 2021. "Unpacking the U‐shaped relationship between related variety and firm sales: Evidence from Japan," Papers in Regional Science, Wiley Blackwell, vol. 100(5), pages 1136-1157, October.

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