Specialization and productive diversification: a space panel model for the mineral extraction industry in Minas Gerais, 2000-2010

Abstract The Mining Industry is important for Minas Gerais. In the 2000s, it doubled its share of state added value, contributing 6.9% of GDP and 20% of industrial GDP in 2010. However, its local effects on regional development are ambiguous and poorly studied. This article aims to analyze the net effects of mining on the complexification of the municipal productive structure of the largest miners in the state. We used a set of regional and urban economics indicators as well as spatial panel modeling. Empirical evidence indicates that during the 2000s there was a relative loss of the regional specialization and concentration concentration differentials in the sectors of High and Medium Technological Intensity, Traditional Productive Services and Modern Productive Services.