Industrial Cores and Peripheries in Brazil

Two criteria were used to clearly differentiate municipalities with localized industrial activity: the
average per capita income level of their neighbors and the ratio (the standard deviation divided by the
average value) by which per capita income varies between the reference municipality and its neighbors’
average. Industrial localities whose neighbors have an average per capita income higher than the
national average and a variance coefficient (CV) below 0.5 were classified as Local Industrial
Agglomerations (LIAs). And those having neighbors with an average per capita income below the
national average and a CV of 0.5 or over were classified as Industrial Enclaves (IEs). An additional
criterion differentiated a Concentrated Income Enclave (IE-CI), with the industrial municipality having
a high per capita income and its neighbors a low per capita income, from a Low Income Enclave (IE-
LI), where both the industrial municipality and its neighbors have a low per capita income.

The consolidated results are shown in Table 3. For the entire national territory, 23 municipalities
were identified as local industrial agglomerations, accounting for 9% of the industrial product of
industrial organizations in Brazil. The distribution of municipalities based on the type of local
industrial agglomeration includes 5 LIAs, 8 IE-LIs and 10 IE-CIs.

Table 3: Local Industrial Agglomerations (LIAs) and Industrial Enclaves (IEs)

(1) % Total Share in Brazil.

11

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