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Location spillovers and growth among Brazilian states

Raul M. Silveira Neto, Carlos R. Azzoni

Silveira-Neto, Raul M., and Carlos R. Azzoni. "Location Spillovers and Growth among Brazilian States." In TD Nereus, edited by Núcleo de Economia Regional e Urbana. São Paulo: Universidade de São Paulo, 2003.

Abstract: The objective of this study if to provide empirical evidence on the importance of location for the growth of per capita income among 25 Brazilian states in the period 1985-1997; we also investigate the possible sectoral sources. First we estimate growth spillovers among the state economies; we then investigate the possible sectoral channels through which these spillover effects might operate. Our results indicate a strong presence of geographical growth spillovers. Moreover, the growth of neighbor states seems to be more important for growth than the growth of trade partner states. The detected spillover effects do not seem to reflect interstate sectoral labor productivity spillovers.