Industrial Clusters and Economic Performance in Brazil

Jose Claudio Pires, Túlio Cravo, Simon Lodato and Caio Piza

No 4771, IDB Publications (Working Papers) from Inter-American Development Bank

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.

JEL-codes: C0 R11 R12 (search for similar items in EconPapers)
Date: 2013-10
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (7)

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Working Paper: Industrial Clusters and Economic Performance in Brazil (2013)
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Persistent link: https://EconPapers.repec.org/RePEc:idb:brikps:4771

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