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In this paper, we present a detailed and comprehensive analysis of the location patterns of manufacturing industries in Brazil using a distance‐based measure and micro‐geographic panel data for a 10‐year period. Our results show that 89.9% and 91% of manufacturing at the 3‐digit level have statistically significant localization for 2006 and 2015, respectively, and that these patterns remain high when we consider 4‐digit classification. High‐tech industries have location patterns at short distances, being localized mainly in large urban areas, while low‐tech industries are also localized at long distances. We also present evidence that agglomeration economies affect the degree of spatial concentration. [ABSTRACT FROM AUTHOR]

Our main goal in this paper is to understand the fuel market's spatial price competition. While most of the literature uses the density of gas stations and proximity to rivals as proxies for spatial competition, we measured the marginal increase in spatial competition by the entrance of a new rival nearby. The empirical results indicate that a new firm's entrance reduces prices, and the reduction is more significant the closer the new rival is. A new rival less than 100 meters away is related to a reduction of 2.6% on the typical incumbent firm price. When the new rival is located farther than 250 meters, the incumbent response is lower than 1%. For even greater distances, the effects were significant only when incumbents are unbranded. The extent of spatial competition matters for the outcome; while firms that already faced intense spatial competition are not impacted by having an entrant seller nearby, those facing low spatial competition had a significant price reduction. The pattern, entry of rivals closer matters more, remains when investigating the gasoline price, the ethanol price, and the gasoline wholesale‐retail margins in Brazil. [ABSTRACT FROM AUTHOR]

This paper analyses the influence of agglomeration and spatial sorting on wages in Brazilian cities. The empirical strategy is based on a two‐step estimation. The first step estimates a wage equation with the observed characteristics of workers and firms and location effects. The second step decomposes the location effects into employment density and fixed effects of firm and worker. We estimate an urban wage premium for a developing country with the simultaneous inclusion of worker and firm fixed effects, instrumental variables, and nighttime lights. We find agglomeration effects of 4.3–5.7%, which are larger than those obtained for developed countries. [ABSTRACT FROM AUTHOR]

Political institutions are an essential component to explain income variation. Brazilian municipalities are characterized by a great contrast in the colonization process and its impacts on the current income level and distribution, and other development aspects. This study analyzes the spatial heterogeneity of the relationship between institutional quality and the municipalities' economic development. We use a spatial moving window method applied to weighted regressions—Geographically Weighted Regression (GWR). We find evidence that good institutions increase income and other variables related to economic development. In addition, the institutional quality influence on economic development measures is distinct across the Brazilian regions. [ABSTRACT FROM AUTHOR]

We employ a detailed skill database from Brazil to investigate how skill relatedness influences structural change in a developing country. We find a positive relationship between the skill‐relatedness density and the entry of skill‐related industries; a negative association with the exit of industries from regional economies; and a positive influence on employment growth. The relationship between skill relatedness and structural change varies across different regions. Entry is more likely in large regions, and depends less on relatedness in advanced and middle‐income regions. Skill relatedness plays a role in preventing exit from small regions and enhancing employment growth in larger regions. [ABSTRACT FROM AUTHOR]