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Related variety and employment growth: a spatial dynamic model for Brazilian microregions
Author(s) -
Silva Gabriel Dias,
Gonçalves Eduardo,
Araújo Junior Inácio Fernandes
Publication year - 2020
Publication title -
regional science policy and practice
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.342
H-Index - 8
ISSN - 1757-7802
DOI - 10.1111/rsp3.12185
Subject(s) - variety (cybernetics) , externality , panel data , economic geography , generalized method of moments , economics , econometric model , econometrics , computer science , microeconomics , artificial intelligence
This paper assesses the effects of economic externalities on the local employment growth in the Brazilian microregions. We present new evidence of the effects of industrial related variety, unrelated variety and productive specialization on regional performance for a developing country. We use a comprehensive labour market database covering the period between 1996 and 2016 for 558 microregions and an econometric method that includes both the temporal and spatial elements in the analysis, by means of a spatial dynamic panel estimated by a generalized method of moments ( GMM ) system. The results suggest that local employment growth is positively influenced by related industrial variety however, it is not related to unrelated variety.