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Product relatedness and economic diversification at the regional level in two emerging economies: Mexico and Brazil

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  • Jose Antonio Alonso
  • Víctor Martín

Abstract

This paper analyzes the process of related diversification at the regional level in two emerging countries: Brazil and Mexico. It claims that apart from regional available capabilities, capabilities coming from abroad in the form of imports may play an important role in the development of new products. In this sense, it proposes a new index to measure the impact of imports on the process of product diversification. The empirical analysis confirms that: the process of productive diversification is highly path dependent; productive density explains the creation of advantages in related products; and interregional and international relations contribute to encourage new activities.

Suggested Citation

  • Jose Antonio Alonso & Víctor Martín, 2019. "Product relatedness and economic diversification at the regional level in two emerging economies: Mexico and Brazil," Regional Studies, Taylor & Francis Journals, vol. 53(12), pages 1710-1722, December.
    • Handle: RePEc:taf:regstd:v:53:y:2019:i:12:p:1710-1722
    DOI: 10.1080/00343404.2019.1605441
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    Cited by:

    1. Jefferson Ricardo Bretas Galetti & Milene Simone Tessarin & Paulo Cesar Morceiro, 2021. "Skill relatedness, structural change and heterogeneous regions: evidence from a developing country," Papers in Regional Science, Wiley Blackwell, vol. 100(6), pages 1355-1376, December.
    2. Qiliang Mao & Xianzhuang Mao, 2021. "Cultural barriers, institutional distance, and spatial spillovers: Evidence from regional industrial evolution in China," Growth and Change, Wiley Blackwell, vol. 52(3), pages 1440-1481, September.
    3. Nomaler, Önder & Verspagen, Bart, 2024. "Related or unrelated diversification: What is smart specialization?," Structural Change and Economic Dynamics, Elsevier, vol. 70(C), pages 503-515.
    4. Xiyan Mao & Peiyu Wang, 2023. "Import–export nexus and China's emerging trade in environmental goods," Growth and Change, Wiley Blackwell, vol. 54(1), pages 157-181, March.
    5. Aistleitner, Matthias & Gräbner, Claudius & Hornykewycz, Anna, 2021. "Theory and empirics of capability accumulation: Implications for macroeconomic modeling," Research Policy, Elsevier, vol. 50(6).
    6. Ron Boschma, 2021. "Designing Smart Specialization Policy: relatedness, unrelatedness, or what?," Papers in Evolutionary Economic Geography (PEEG) 2128, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised Sep 2021.
    7. Mariane Santos Françoso & Ron Boschma & Nicholas Vonortas, 2024. "Regional diversification in Brazil: The role of relatedness and complexity," Growth and Change, Wiley Blackwell, vol. 55(1), March.
    8. Nomaler, Önder & Verspagen, Bart, 2022. "Some new views on product space and related diversification," MERIT Working Papers 2022-011, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    9. Jacopo Di Domenico & Alberto Russo, 2022. "Innovation, growth, and productivity appropriation. How the elites learned to stop worrying and love public debt," Working Papers 2022/12, Economics Department, Universitat Jaume I, Castellón (Spain).
    10. Moritz Breul & Fabio Pruß, 2021. "Applying Evolutionary Economic Geography beyond case studies in the Global North: Regional diversification in Vietnam," Papers in Evolutionary Economic Geography (PEEG) 2124, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised Jul 2021.
    11. Moritz Breul & Carolin Hulke & Linus Kalvelage, 2021. "Path Formation and Reformation: Studying the Variegated Consequences of Path Creation for Regional Development," Papers in Evolutionary Economic Geography (PEEG) 2115, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised May 2021.
    12. Ron Boschma, 2021. "Global Value Chains from an Evolutionary Economic Geography perspective: a research agenda," Papers in Evolutionary Economic Geography (PEEG) 2134, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised Nov 2021.
    13. Calzada, BCO & Spinola, Danilo, 2024. "Determinants of Export Diversification in Resource-Dependent Economies: The Role of Product Relatedness and Macroeconomic Conditions," CAFE Working Papers 30, Centre for Accountancy, Finance and Economics (CAFE), Birmingham City Business School, Birmingham City University.
    14. Belmartino, Andrea, 2022. "Green & non-green relatedness: challenges and diversification opportunities for regional economies in Argentina," Nülan. Deposited Documents 3697, Universidad Nacional de Mar del Plata, Facultad de Ciencias Económicas y Sociales, Centro de Documentación.

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