Industrial clusters and economic performance in Brazil

Working paper


Cravo, T., Lodato, S., Pires, C. and Piza, C. 2013. Industrial clusters and economic performance in Brazil. Washington, D.C., United States Inter-American Development Bank.
TypeWorking paper
TitleIndustrial clusters and economic performance in Brazil
AuthorsCravo, T., Lodato, S., Pires, C. and Piza, C.
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.

KeywordsIndustrial cluster, regional economic development, spatial dependence
LanguageEnglish
PublisherInter-American Development Bank
Place of publicationWashington, D.C., United States
Publication process dates
Deposited03 Mar 2020
Output statusPublished
Publisher's version
Copyright Statement

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.

Additional information

IDB Working Paper Series; 475

Web address (URL)https://publications.iadb.org/en/industrial-clusters-and-economic-performance-brazil
Institution nameInter-American Development Bank
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