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The dynamics of industrial geographic distribution: evidence from Brazil (2002-2014)

Author

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  • Roberta de Moraes Rocha
  • José Ewerton Silva Araújo

Abstract

The geographical distribution of Brazilian industries changed between 2002 and2014, and it was more significant for some industries. Based on Dumais et al. (2002), weexplore the dynamics of these changes by a decomposition of the employment variation andconcentration index for manufacturing industries grouped by technological intensity, and we identify the direction of the locational movements of the firms among microregions. In general., the results indicate that between 2002 and 2014, there was a trend of convergenceamong the microregions’ participation in industrial employment, contributing to industrialdeconcentration in the country, with the exception of the group of high-technology industries,which became more concentrated. Components of the life cycle of industries, especially thegrowth of employment generated by new industries in non-metropolitan microregions, areidentified as main propelling of this evidence. In general., the results are consistent with theimportance of agglomeration economies over historic accidents to explain the industrialconcentration in Brazil between 2002 and 2014. JEL Classification: R12; L60.

Suggested Citation

  • Roberta de Moraes Rocha & José Ewerton Silva Araújo, 2021. "The dynamics of industrial geographic distribution: evidence from Brazil (2002-2014)," Brazilian Journal of Political Economy, Center of Political Economy, vol. 41(4), pages 760-781.
    • Handle: RePEc:ekm:repojs:v:41:y:2021:i:4:p:760-781:id:2263
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    More about this item

    Keywords

    Industry concentration; decomposition of employment variation; industry mobility;
    All these keywords.

    JEL classification:

    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
    • L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General

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