Open-access PRODUCTIVE DIVERSITY AND INDUSTRIAL ACTIVITY: AN ANALYSIS FOR BRAZILIAN MUNICIPALITIES

Due the importance of diversifying production for the industrial sector, this study seeks to assess whether the level of diversification of a productive structure influences the adoption of industrial policies. For this, data for 5,570 Brazilian municipalities in 2015 and Hidalgo and Hausmann’s (2009) method of reflections are used. Descriptive statistics ordinary least squares are used to evaluate the tested hypotheses. Results show a positive and significant relation between the effective diversity of activities and the adoption of industrial policies in all analyzed scenarios. Therefore, results reinforce the argument that industrial policies are adopted in response to specific productive activities and are conditioned by the diversification structure of municipalities.

KEYWORDS:
Industrial policy; economic complexity; productive activities; Brazilian municipalities

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