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Industrial Clusters and Economic Performance in Brazil

Author

Listed:
  • Jose Claudio Pires
  • Tulio Cravo
  • Simon Lodato
  • Caio Piza

Abstract

Industrial 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.

Suggested Citation

  • Jose Claudio Pires & Tulio Cravo & Simon Lodato & Caio Piza, 2013. "Industrial Clusters and Economic Performance in Brazil," OVE Working Papers 0513, Inter-American Development Bank, Office of Evaluation and Oversight (OVE).
    • Handle: RePEc:idb:ovewps:0513
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    Cited by:

    1. Reinhold Kosfeld & Timo Mitze, 2020. "The role of R&D-intensive clusters for regional competitiveness," MAGKS Papers on Economics 202001, Philipps-Universität Marburg, Faculty of Business Administration and Economics, Department of Economics (Volkswirtschaftliche Abteilung).
    2. Reinhold Kosfeld & Mirko Titze, 2014. "Benchmark Value Added Chains and Regional Clusters in German R&D Intensive Industries," ERSA conference papers ersa14p1396, European Regional Science Association.
    3. Christian Ketels, 2015. "Competitiveness and Clusters: Implications for a New European Growth Strategy. WWWforEurope Working Paper No. 84," WIFO Studies, WIFO, number 57892, July.
    4. Reinhold Kosfeld & Mirko Titze, 2017. "Benchmark Value-added Chains and Regional Clusters in R&D-intensive Industries," International Regional Science Review, , vol. 40(5), pages 530-558, September.
    5. B.G. Jean Jacques Iritié, 2018. "Economic issues of innovation clusters-based industrial policy: a critical overview," Global Business and Economics Review, Inderscience Enterprises Ltd, vol. 20(3), pages 286-307.
    6. Fierro Carrión, Luis & Bercovich, Néstor & Paton, Jonatan & Del Castillo, Jaime, 2018. "Contribution of cluster strategies and inter-cluster cooperation for the competitive progress of the EU and LAC," MPRA Paper 87274, University Library of Munich, Germany.

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    More about this item

    Keywords

    Industrial cluster; regional economic development; spatial independence;
    All these keywords.

    JEL classification:

    • 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)

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