2012/20 | LEM Working Paper Series | |
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Productivity and structural heterogeneity in the Brazilian manufacturing sector: trends and determinants |
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Eva Yamila Catela, Mario Cimoli, Gabriel Porcile |
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Keywords | ||
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Structural heterogeneity; technological change; productivity growth; technological asymmetries
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JEL Classifications | ||
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L22, L25, O33, O31
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Abstract | ||
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This paper discusses the evolution of firms’ productivity and
structural heterogeneity (SH) in the Brazilian manufacturing industry
in the 2000s. SH is defined (following the Latin American
structuralist tradition) as a situation in which a large share of
total firms is in the lowest productivity groups of the production
structure, and there are very large differences in labour productivity
between groups and firms. The paper combines and makes compatible
several databases on manufacturing production, innovation and
micro-social data for Brazil, in order to measure productivity and SH,
to analyze its evolution between 2000 and 2008, and to discuss its
determinants. Econometric analyses (k-means cluster methodology to
identify productivity groups, and ordered probit models to analyse the
determinants of SH) show that increasing returns in innovation and
learning prevailed in the 2000s, while policies failed to encourage
the catching up process by laggard firms. As a result, SH did not fall
in the Brazilian manufacturing sector.
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