Product relatedness and economic diversification at the regional level in two emerging economies: Mexico and Brazil

Alonso, José Antonio; Martín, Víctor

doi:10.1080/00343404.2019.1605441

Cited by 20 publications

(24 citation statements)

References 49 publications

(1 reference statement)

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“…This path‐dependent conceptualization of regional diversification has so far largely drawn upon insights into industrialized countries in Europe and North America. This is why critical voices have begun to question whether related diversification provides a sound theoretical framework for explaining the massive process of productive change that several economies in the Global South have undergone (Alonso & Martín, 2019; He et al ., 2018; Zhu et al ., 2017). They emphasize the need to extend research beyond the existing strong focus on industrialized countries in Europe or North America in order to broaden our understanding of regional diversification in distinct settings.…”

Section: Introductionmentioning

confidence: 99%

“…They emphasize the need to extend research beyond the existing strong focus on industrialized countries in Europe or North America in order to broaden our understanding of regional diversification in distinct settings. Recently, first endeavours have complemented insights gained from regional diversification processes in upper‐middle income and BRIC economies (Alonso & Martín, 2019; He et al ., 2018; Zhu et al ., 2017). However, according to the economic complexity ranking, between 2005 and 2015, the most substantial structural change took place especially in low‐income and lower‐middle income economies such as Cambodia, the Philippines, Uganda, Vietnam and Zambia, indicating an increasing diversification towards more complex products (The Growth Lab at Harvard University, n.d.).…”

Section: Introductionmentioning

confidence: 99%

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Applying Evolutionary Economic Geography beyond case studies in the Global North: Regional diversification in Vietnam

Breul

Pruß

2021

Singap J Trop Geogr

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Hitherto, the path‐dependent understanding of regional diversification in Evolutionary Economic Geography (EEG) has drawn largely on insights into industrialized countries. However, in the past few decades several regions in the Global South have undergone rapid structural transformations despite starting out with unfavourable regional asset bases. This raises the question as to whether the strong emphasis on endogenous capabilities in EEG also provides a sound theoretical framework for explaining these tremendous diversification dynamics. This paper therefore aims to re‐evaluate the wider validity of the path‐dependent conceptualization of regional diversification in the context of a lower‐middle income economy. To this end, we analyse the diversification of Vietnamese regions between 2006 and 2015. In order to take into account context‐specific conditions that characterize Vietnam's economy, we add the role of foreign‐owned firms and state‐owned enterprises to the conceptualization of regional diversification processes. While the role of relatedness holds true for Vietnam, the presence of foreign‐owned firms allowed Vietnamese regions to break away from path dependency and diversify to unrelated industries. The findings highlight that only by adapting the analysis to context‐specific conditions are we able to understand how regional diversification takes place across different settings.

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Section: Introductionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Applying Evolutionary Economic Geography beyond case studies in the Global North: Regional diversification in Vietnam

Breul

Pruß

2021

Singap J Trop Geogr

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“…(2017), He et al. (2019), and Alonso and Martín (2019) find that spatial spillover between neighbor regions is a significant driving force for industrial evolution. In particular, with the rising economic complexity and increasing dependence of industrial evolution on the spatial network of collaboration, inter‐regional collective learning through regional interaction has become a major avenue for enhancing regional development.…”

Section: Introductionmentioning

confidence: 98%

“…A vast body of evidence has generally confirmed that spatial spillover, an important opportunity window to promote the evolution of local industries, has a positive impact on regional development. Boschma et al (2017), He et al (2019), and Alonso and Martín (2019) find that spatial spillover between neighbor regions is a significant driving force for industrial evolution. In particular, with the rising economic complexity and increasing dependence of industrial evolution on the spatial network of collaboration, inter-regional collective learning through regional interaction has become a major avenue for enhancing regional development.…”

Section: Introductionmentioning

confidence: 99%

Cultural barriers, institutional distance, and spatial spillovers: Evidence from regional industrial evolution in China

Qiliang

Xian-zhuang

2021

Growth and Change

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This study empirically explores the formation of interregional cultural barriers that affect spatial spillovers within the framework of institutional distance based on evidence of regional industrial evolution in China. With dialect as the proxy of culture, this study finds that, first, regional cultural differences will hinder the spatial spillovers of industrial evolution, but the formation of cultural barriers is not only related to culture itself but also closely related to the formal institutional distance between regions. Second, when there is inter‐regional formal institutional distance, formal institutions are insufficient to shape the economic order, and cultural factors with the attributes of informal institutions will become an alternative arrangement to regulate inter‐regional interaction through trust and information mechanisms. The construction of mutual trust based on cultural affinity can reduce the uncertainty of inter‐regional interactions. However, this trust mechanism is regulated by formal institutions and will be significantly weakened with the reduction in formal institutional distance. In addition, information diffusion is easier in regions of cultural homogeneity. However, this information mechanism is often confined to a small social network, and it tends to be weaker as economic society becomes increasingly open and complex.

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“…While the former refers to actors that establish new firms or to existing companies introducing new activities, the influence of system-level agency transcends the organizational borders of individual firms and transforms regional innovation systems (Hassink, Isaksen, and Trippl 2019). Moreover, scholars have suggested broadening the narrow focus of EEG beyond locally available assets (Trippl, Grillitsch, and Isaksen 2018;Alonso and Martín 2019). Binz, Truffer, and Coenen (2016, 174) propose an analytical framework that incorporates these claims and explicitly includes firm and nonfirm actors, resources other than knowledge, and the crucial role of extraregional assets to provide "more nuanced answers to the fundamental questions when (under what conditions) and how (through what kind of mechanisms) new industrial paths are created in regions."…”

Section: Introductionmentioning

confidence: 99%

Path Formation and Reformation: Studying the Variegated Consequences of Path Creation for Regional Development

2021

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The article, thereby, aims to contribute to the burgeoning research strand on new path creation by bringing the debate a step closer to the major point of concern, regional economic development.We demonstrate the use of the framework to understand how new path creation may affect existing economic activities and how this relates to the overall goal of promoting regional economic development in an illustrative case study of the Zambezi region in northeastern Namibia. The Zambezi region, as we will show, is a suitable example to study the effects of new path creation on existing economic structures. Historically, the region relied on agriculture as the main livelihood activity. Since the 1990s, different resource formation processes have contributed to the creation of a tourism path. We analyze this formation process of the tourism path and its influence on the existing agricultural path. The findings highlight that new path development cannot be interpreted as a growth path for the entire region. The formation of the tourism path has generated variegated outcomes within the region, with benefits and losses unevenly distributed among firms and people.

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Product relatedness and economic diversification at the regional level in two emerging economies: Mexico and Brazil

Cited by 20 publications

References 49 publications

Applying Evolutionary Economic Geography beyond case studies in the Global North: Regional diversification in Vietnam

Applying Evolutionary Economic Geography beyond case studies in the Global North: Regional diversification in Vietnam

Cultural barriers, institutional distance, and spatial spillovers: Evidence from regional industrial evolution in China

Path Formation and Reformation: Studying the Variegated Consequences of Path Creation for Regional Development

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