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Classic and Spatial Shift-Share Analysis of State-Level Employment Change in Brazil

Author

Listed:
  • Valente J. Matlaba

    (University of Waikato)

  • Mark Holmes

    (University of Waikato)

  • Philip McCann

    (University of Groningen)

  • Jacques Poot

    (University of Waikato)

Abstract

This paper combines classic and spatial shift-share decompositions of 1981 to 2006 employment change across the 27 states of Brazil. The classic shift-share method shows higher employment growth rates for underdeveloped regions that are due to an advantageous industry-mix and also due to additional job creation, commonly referred to as the competitive effect. Alternative decompositions proposed in the literature do not change this broad conclusion. Further examination employing exploratory spatial data analysis (ESDA) shows spatial correlation of both the industry-mix and the competitive effects. Considering that until the 1960s economic activities were more concentrated in southern regions of Brazil than they are nowadays, these results support beta convergence theories but also find evidence of agglomeration effects. Additionally, a very simple spatial decomposition is proposed that accounts for the spatially-weighted growth of surrounding states. Favourable growth in northern and centre-western states is basically associated with those states’ strengths in potential spatial spillover effect and in spatial competitive effect.

Suggested Citation

  • Valente J. Matlaba & Mark Holmes & Philip McCann & Jacques Poot, 2012. "Classic and Spatial Shift-Share Analysis of State-Level Employment Change in Brazil," Working Papers in Economics 12/08, University of Waikato.
    • Handle: RePEc:wai:econwp:12/08
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    File URL: https://repec.its.waikato.ac.nz/wai/econwp/1208.pdf
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    References listed on IDEAS

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    Cited by:

    1. L. V. Melnikova, 2021. "Spatial Analysis of the Dynamics of Structural Shifts in the Economies of Russian Regions in 2004–2019," Regional Research of Russia, Springer, vol. 11(4), pages 454-463, October.
    2. Chacon-Hurtado, Davis & Kumar, Indraneel & Gkritza, Konstantina & Fricker, Jon D. & Beaulieu, Lionel J., 2020. "The role of transportation accessibility in regional economic resilience," Journal of Transport Geography, Elsevier, vol. 84(C).

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    More about this item

    Keywords

    regional employment; shift-share analysis; spatial autocorrelation; spatial spillovers; Brazil;
    All these keywords.

    JEL classification:

    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
    • N66 - Economic History - - Manufacturing and Construction - - - Latin America; Caribbean
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes

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