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Agglomeration Externalities and 1981-2006 Regional Growth in Brazil

Author

Listed:
  • 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.

Suggested Citation

  • Valente J. Matlaba & Mark Holmes & Philip McCann & Jacques Poot, 2012. "Agglomeration Externalities and 1981-2006 Regional Growth in Brazil," Working Papers in Economics 12/07, University of Waikato.
    • Handle: RePEc:wai:econwp:12/07
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    File URL: https://repec.its.waikato.ac.nz/wai/econwp/1207.pdf
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    References listed on IDEAS

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    Cited by:

    1. Valente J. Matlaba & Mark J. Holmes & Philip McCann & Jacques Poot, 2013. "A Century Of The Evolution Of The Urban System In Brazil," Review of Urban & Regional Development Studies, Wiley Blackwell, vol. 25(3), pages 129-151, November.
    2. SHARMA Anand, 2017. "Dynamic Externalities And Regional Manufacturing Growth: Evidence From India," Studies in Business and Economics, Lucian Blaga University of Sibiu, Faculty of Economic Sciences, vol. 12(1), pages 185-201, April.
    3. Khaled Thabet, 2015. "Industrial structure and total factor productivity: the Tunisian manufacturing sector between 1998 and 2004," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 54(2), pages 639-662, March.

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    More about this item

    Keywords

    convergence; economic growth; knowledge externalities; Brazil;
    All these keywords.

    JEL classification:

    • C52 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Model Evaluation, Validation, and Selection
    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; 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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