Industrial dynamics in Brazilian mesoregions: The relevance of technological intensity

This study examines the factors influencing industrial location in Brazil during two periods: 2006–2014 and 2014–2019. Using multilevel logit regressions, the net balance of industrial establishments within mesoregions was considered as the dependent variable. Results indicate that technological development levels significantly determine industrial dynamics. Additionally, industries favor mesoregions with skilled labor and low labor costs. The study also demonstrates that agglomeration economies and market size are crucial determinants in the creation of manufacturing industries. The multilevel analysis provides a clear understanding of the importance of local characteristics for the establishment of industries with varying technological levels.