Local Productive Arrangements: A Strategy for Better Performance

This study evaluates the Local Productive Arrangements (LPAs) policy in Rio Grande do Sul. It will be examined was analyzed whether the sectors of the municipalities that have APL had some impact on the level of employment and income than those who don’t. The data are taken from the RAIS using 672 CNAE 2.0’s classes site for all municipalities in the state from 2006 to 2014. The method used was the difference-in-differences applying matching and fixed-effect for the sectors and time. The arrangement named Moveleiro da Serra Gaúcha and the arrangement named Pedras, Gemas e Joias were the ones who had positive and significant results for the level of employment. On average remuneration analysis, nine APLs had positive and significant effects