IDEAS home Printed from
MyIDEAS: Login to save this paper or follow this series

Neighborhood and Efficiency in Manufacturing in Brazilian Regions: a Spatial Markov Chain Analysis

  • Daniela Schettini
  • Carlos Roberto Azzoni
  • Antonio P√°ez

More competitive regions tend to present higher level of economic growth, with positive reflexes on social aspects. The different economic performances observed among regions are explained mainly by the spatial concentration of the economic activities. This paper aims to analyze the influence of space on the regional competitiveness behavior of the Brazilian manufacturing industry. In doing so, it uses a panel data of 137 mesoregions and industry sectors that are aggregated in four categories according to technology intensity, during 2000 to 2006. We apply the stochastic frontier of production methodology to obtain the measures of regional efficiency and the Markov spatial transition matrixes that analyze the dynamic of the transition of the regions among efficiency categories considering their local spatial context. We found evidences that there is a higher probability of the regions to become less competitive when the neighborhood is not considered. On the other hand, when considering spatial influences, we observed that the probability of a good neighborhood (more competitive) in stimulating the region’s efficiency is higher than the probability of a bad neighborhood (less competitive) in lowering its efficiency. In other words, the pull effect of the neighborhood in the competitiveness of the Brazilian regions is stronger than the drag effect.

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

File URL:
Download Restriction: no

Paper provided by European Regional Science Association in its series ERSA conference papers with number ersa10p1052.

in new window

Date of creation: Sep 2011
Date of revision:
Handle: RePEc:wiw:wiwrsa:ersa10p1052
Contact details of provider: Postal: Welthandelsplatz 1, 1020 Vienna, Austria
Web page:

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

as in new window
  1. Ben Gardiner & Ron Martin & Tyler Peter, 2004. "Competitiveness, Productivity and Economic Growth across the European Regions," ERSA conference papers ersa04p333, European Regional Science Association.
  2. Afriat, Sidney N, 1972. "Efficiency Estimation of Production Function," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 13(3), pages 568-98, October.
  3. Battese, G E & Coelli, T J, 1995. "A Model for Technical Inefficiency Effects in a Stochastic Frontier Production Function for Panel Data," Empirical Economics, Springer, vol. 20(2), pages 325-32.
  4. Meeusen, Wim & van den Broeck, Julien, 1977. "Efficiency Estimation from Cobb-Douglas Production Functions with Composed Error," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 18(2), pages 435-44, June.
  5. Aigner, Dennis & Lovell, C. A. Knox & Schmidt, Peter, 1977. "Formulation and estimation of stochastic frontier production function models," Journal of Econometrics, Elsevier, vol. 6(1), pages 21-37, July.
Full references (including those not matched with items on IDEAS)

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

When requesting a correction, please mention this item's handle: RePEc:wiw:wiwrsa:ersa10p1052. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Gunther Maier)

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.

This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.