Neighborhood and Efficiency in Manufacturing in Brazilian Regions: a Spatial Markov Chain Analysis
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 regionâ€šÃ„Ã´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.
|Date of creation:||Sep 2011|
|Date of revision:|
|Contact details of provider:|| Postal: |
Web page: http://www.ersa.org
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.:
- 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.
- 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.
- 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.
- 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.
- Ben Gardiner & Ron Martin & Tyler Peter, 2004. "Competitiveness, Productivity and Economic Growth across the European Regions," ERSA conference papers ersa04p333, European Regional Science Association.
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 references are entirely missing, you can add them using this form.