Regional diversification in Brazil: the role of relatedness and complexity

Mariane Santos Françoso, Ron Boschma () and Nicholas Vonortas

No 2206, Papers in Evolutionary Economic Geography (PEEG) from Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography

Abstract: The paper contributes to the growing literature on the relationship between relatedness, complexity and regional diversification. It explores regional diversification in an emerging economy, focusing on diversification opportunities of regions with distinct levels of local capabilities. We investigate the importance of relatedness and economic complexity for sectoral and technological diversification in all regions of Brazil during the period 2006-2019. Regions tend to diversify in sectors/technologies requiring similar capabilities to those already available locally. In general, the higher the sector/technology complexity, the lower the probability of diversification. However, in high-complex regions, complexity reverses into a positive force for diversification. Our analysis shows catching-up and diversification prospects vary widely across different types of regions in Brazil.

Keywords: regional diversification; relatedness; complexity; emerging economies; Brazil (search for similar items in EconPapers)
JEL-codes: O25 O31 O33 R11 (search for similar items in EconPapers)
Date: 2022-02, Revised 2022-02
New Economics Papers: this item is included in nep-ban, nep-geo, nep-ino, nep-sbm, nep-tid and nep-ure
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http://econ.geo.uu.nl/peeg/peeg2206.pdf Version February 2022 (application/pdf)

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Journal Article: Regional diversification in Brazil: The role of relatedness and complexity (2024)
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Persistent link: https://EconPapers.repec.org/RePEc:egu:wpaper:2206

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