Local, Complementarity and Similarity Relatedness in Different Regional and Sectoral Contexts

Jefferson Ricardo Bretas Galetti, Milene Simone Tessarin and Paulo César Morceiro

No 12-2020, TD NEREUS from Núcleo de Economia Regional e Urbana da Universidade de São Paulo (NEREUS)

Abstract: There is little evidence on the relationship between occupational relatedness and regional specialisation in developing countries with high regional inequality and industrial heterogeneity. We compute local synergy, complementarity and similarity relatedness based on 2 514 occupations to estimate their effects on the occupational structure in 558 Brazilian microregions between 2003 and 2018. We find that the three indexes affect the regional specialisation in distinct magnitudes, and they have different effects in different regional and sectoral contexts. Sectoral complementarities affect structural change and strengthen similarity relatedness. The findings shed light on developing countries’ distinct regional contexts rather than ‘one-size-fits-all’ policies.

Keywords: Occupational relatedness; Related variety; Regional specialisation; Developing country (search for similar items in EconPapers)
JEL-codes: J21 J24 L23 R12 (search for similar items in EconPapers)
Pages: 28 pages
Date: 2020-10-24
New Economics Papers: this item is included in nep-geo, nep-lma, nep-tid and nep-ure
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Persistent link: https://EconPapers.repec.org/RePEc:ris:nereus:2020_012

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