The dynamics of industrial geographic distribution: evidence from Brazil (2002-2014)

Vol. 41 No. 4 (2021)

Published November 11, 2021

How to Cite

Rocha, Roberta de Moraes, and José Ewerton Silva Araújo. 2021. “The Dynamics of Industrial Geographic Distribution: Evidence from Brazil (2002-2014)”. Brazilian Journal of Political Economy 41 (4):760-81.

The dynamics of industrial geographic distribution: evidence from Brazil (2002-2014)

Roberta de Moraes Rocha
Professor in the PhD program in Economics at Universidade Federal de Pernambuco Campus do Agreste, Caruaru-PE, Brasil.
José Ewerton Silva Araújo
Master in Economics, Universidade Federal de Pernambuco, Campus do Agreste, Caruaru-PE, Brasil.
Brazilian Journal of Political Economy, Vol. 41 No. 4 (2021), Oct-Dez/2021, Pages 760-781


The geographical distribution of Brazilian industries changed between 2002 and
2014, and it was more significant for some industries. Based on Dumais et al. (2002), we
explore the dynamics of these changes by a decomposition of the employment variation and
concentration index for manufacturing industries grouped by technological intensity, and we identify the direction of the locational movements of the firms among microregions. In general., the results indicate that between 2002 and 2014, there was a trend of convergence
among the microregions’ participation in industrial employment, contributing to industrial
deconcentration in the country, with the exception of the group of high-technology industries,
which became more concentrated. Components of the life cycle of industries, especially the
growth of employment generated by new industries in non-metropolitan microregions, are
identified as main propelling of this evidence. In general., the results are consistent with the
importance of agglomeration economies over historic accidents to explain the industrial
concentration in Brazil between 2002 and 2014.

JEL Classification: R12; L60.

Keywords: Industry concentration decomposition of employment variation industry mobility