Urban Attributes and Regional Differences in Productivity: Evidence from the External Economics of Brazilian Micro-regions from 2000 - 2010

Rodrigo Ferreira Simões,Elton Eduardo Freitas

doi:10.18533/jefs.v2i01.51

Abstract

This study aims to identify the extent to which the local productive structure of a city leverages external economies of scale. Formal employment data is grouped into segments according to its level of technological intensity. The model is estimated using panel data. The results suggest evidences of local externalities like location/MAR and urbanization/Jacobs. The results also indicate that the Medium-High- and High-Technology industry segments have advantages only in diversified urban centers, while the Low- and Medium-Low-Technology industries have more advantages in intermediate-sized urban centers, specialized in few industrial activities.

Highlights

A central tendency in the literature concerns the attempt to understand why economic activities tend to be geographically concentrated and how the bases of the local economies structure and shape the income inequalities between regions and people
The basic hypothesis of this study is that local productivity, measured by the average local wage, is influenced by personal productive characteristics, and by regional attributes, by industrial particularities that impact the productivity gap, by differences in the regional productive structures and, by urban attributes such as centrality and the availability of complex services
The results show that, in the segments of Medium-High- and HighTechnology, diverse urban centers have a positive impact on productivity, which is not the case in the Medium-Low and Low segments

Summary

Introduction

A central tendency in the literature concerns the attempt to understand why economic activities tend to be geographically concentrated and how the bases of the local economies structure and shape the income inequalities between regions and people. These issues have become more relevant in those countries with a large geographical area, high population and different stages of sectoral or spatial development. Brazil’s process of external insertion deepened, as the country’s market opened up to foreign products This brought greater competitiveness to the domestic industry

Objectives

Results

Conclusion