Industrial clusters and economic performance in Brazil

Cravo, Tulio, Lodato, Simon ORCID: https://orcid.org/0000-0002-7536-527X, Pires, Claudio and Piza, Caio (2013) Industrial clusters and economic performance in Brazil. Working Paper. Inter-American Development Bank, Washington, D.C., United States. .

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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.

Item Type: Monograph (Working Paper)
Additional Information: IDB Working Paper Series; 475
Keywords (uncontrolled): Industrial cluster, regional economic development, spatial dependence
Research Areas: A. > Business School > Economics
Item ID: 29038
Notes on copyright: Copyright © Inter-American Development Bank. This working paper may be reproduced for any non-commercial purpose. It may also be reproduced in any academic journal indexed by the American Economic Association's EconLit, with previous consent by the Inter-American Development Bank (IDB), provided that the IDB is credited and that the author(s) receive no income from the publication.
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Depositing User: Simon Lodato
Date Deposited: 03 Mar 2020 08:34
Last Modified: 03 Mar 2020 08:55
URI: https://eprints.mdx.ac.uk/id/eprint/29038

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