Regional development

Regional industrial productivity differentials in Brazil in the 21st century


Daniela Schettini and Carlos R. Azzoni
Department of Economics, University of Sao Paulo, Brazil


Production functions and stochastic production frontiers are estimated for manufacturing production across Brazilian regions in the period 2000-06. The 2 digit classification (22 sectors) and a 4-sector classification based on technological intensity were used. The results indicate that the concentration levels observed in the beginning of this Century replicates the levels traditionally observed. The evidence does not suggest any important changes in regional concentration in Brazil after the economy was stabilized and the degree of openness increased in more recent years. However, some interesting cases of high productivity outside the core manufacturing area, related to agribusiness activities, are identified.


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