A Study on the Industrial Specialization of Brazilian States Using Location Quotient Analysis: Implications for Korean Enterprises

Abstract

The main purpose of this study is to examine the industrial specialization of Brazilian states by using location quotient analysis and to draw implications for Korean companies interested in entering the Brazilian local markets. Based on data obtained from Cadastro Central de Empresas of the Brazilian Institute of Geography and Statistics (IBGE), this paper analyzed the industrial specialization of each Brazilian state in 2009 and 2018 through the location quotient method and compared them to examine both the current status and trends in industrial sectors and advantageous industries. Based on the location quotient analysis, this study identified the industrial specialization of Brazil’s federative units (26 states and 1 Federal District). Seven industrial sectors out of 20 major industrial categories based on CNAE 2.0, which is judged to be relatively promising for the advancement of Korean companies, were also examined and discussed. This study has importance in examining the current status and trends in the industrial specialization of Brazilian states, which will provide a reference for follow-up studies and offer future implications for Korean companies’ effective entry into the Brazilian regional market.