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This paper analyzes the contribution of clusters to local development. The case of the Local Productive Arrangements (APL) in the non-metropolitan municipalities of the Sao Paulo StateBrazil is examined. Using the Oaxaca Blinder decomposition technique it is examined if there is a gap in local development gap or if there are better “living conditions” in municipalities with APL compared to those without. Results obtained indicate that municipalities with APL exhibit better development levels than municipalities without APL. However, such difference responds to demographic and economic factors rather than unobservable ones.

¿Existe un mejor desarrollo local en los municipios con clúster?: el caso del estado de São Paulo en Brasil