Economic complexity of the export agenda and influences on the economy of municipalities in Southern Minas

Abstract

The relationship between the export base of a territory and the economic complexity of the exported products can contribute to the understanding of its economic dynamics. In this sense, the present study seeks to analyze the influences of the export agenda on the Gross Domestic Product (GDP) and on the average income of the formal sector in the five largest municipalities in southern Minas Gerais (Extrema, Poços de Caldas, Pouso Alegre, Varginha and Itajubá). To reach the proposed objective, a quantitative approach, hypothetical-deductive logic, and positivist epistemology were adopted. The data were analyzed using descriptive statistics, analysis of variance, and linear regression. The results pointed out that in municipalities whose export base is more diversified and composed of products of positive economic complexity, exports have a high significant and positive correlation with GDP and average income. This demonstrates the importance of the complexity and diversification of the export base for the economy of the municipalities.

Keywords: Export base. Economic complexity index. Average income. Regional development.