The nexus between road infrastructure and economic diversification: exploring its uneven impacts in Brazil

We examine the impact of road investments on regional diversification in Brazil, considering the moderating role of economic development, relatedness, and economic complexity. Using municipal and sector-level data from 2007 to 2018, we find that road infrastructure positively influences the emergence of new economic activities. However, our findings suggest that these effects vary across sectors, with stronger impacts on industries with higher technological intensity and complexity, suggesting a