Economic Complexity and Inequality: Does Regional Productive Structure Affect Income Inequality in Brazilian States?

Recent research on the effects of productive structure an economy has turned to examining whether economic complexity is associated with lower income inequality. In contrast commonly adopted approach that estimates impact in a cross-country setting, we use panel data for Brazilian states identify relationship between and inequality at sub-national level. Our findings show inverted U-shape, indicating growing levels first worsen then improve distribution states. also this particularly prominent those have relatively high urbanization overall development. Furthermore, separate from degree which regional structures are characterised by diversity terms industries occupations. These pronounced less developed more rural character. combination, these confirm important role plays processes drive improvements distributions suggest warranted