Industrial Cores and Peripheries in Brazil

provided by Research Papers in Economics

Industrial Cores and Peripheries in Brazil

Ricardo Machado Ruiz
[email protected]
Federal University of Minas Gerais (UFMG)
Center for Regional Development and Planning (CEDEPLAR)

Edson Paulo Domingues

[email protected]

Federal University of Minas Gerais (UFMG)

Center for Regional Development and Planning (CEDEPLAR)

Belo Horizonte, Brazil
April, 2005

Abstract:

There is considerable evidence to demonstrate that the industrial localization in developing
countries shows high level of spatial concentration, and the industrial decentralization is quite restricted
to few isolated regions. The aim of this paper is to analyze the Brazilian case to identify the industrial
cores and to find out whether Brazil follows this conventional view on industrial location in developing
countries.

This study is based on a database that merges two sets of data: the first describes 35600 industrial
firms, and the second has information on the economic, social and urban structure of 5507 cities (year
2000). Based on these datasets, the industrial cores and their respective peripheries are identified,
classified, and discussed.

The conclusions are: (1) Brazil has several industrial cores with different scales, structures, and
regional level of integration; (2) there are large regions with growing industrial peripheries that are
strongly tied to the primary cores; these are what we called “spatial industrial agglomerations”;
however, we also identified (3) regions that did not manage to build peripheries able to assimilate
spillovers generated by its industrial centers; these are the “industrial enclaves”, (4) and also regions
that are fully marginalized of the industrialization.

Our main conclusion is: the Brazilian economic space is a mixed case. It is not a set of
disconnected or isolated industrial islands, but it is still behind a full regional economic integration.

Key words: Brazil, Regional Economics, Industrial Agglomerations, Industry, and Regional
Development.

JEL / JEL Classification: R11, R12, R23, R30, R58

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