consumer and capital goods (BCD) sectors. Concentrations of intermediate goods (BI) sectors have
also a positive impact on imports, but to a smaller degree.
Before concluding this analysis, some remarks should be made. The estimated models point to
strong spatial correlations that can be the result of spatial linkages related to a set of spatial spillover
effects. For regional development policies, this model specification indicates the significance of
centripetal forces present in industrial agglomerations and the difficulties that are faced by companies
located far from consolidated industrial hubs. Such forces are probably more intense in the case of
regional development policies that are focused on durable and capital goods industries, as these are
positively related with the presence of diversified industrial agglomerations. Such difficulties would
probably be less noticeable for non-durable consumer goods sectors.
Another noteworthy aspect is the absence in some cases of the effects measured by three
indicators that reflect what are considered to be classic locational determinants, such as the extent of
infrastructure (ESGT), the degree of upper schooling (E25) and the dummy NRM that captures non-
metropolitan areas. The non-significance of these variables might be explained by the diversity of the
industrial structure. To verify that such location determinants have no significance to industrial
agglomerations, it would be advisable to separate these groups further into subgroups of companies,
based either on their technological (A, B and C) or sectoral classification, and then make sure that they
are really non-significant determinants.
5. Heterogeneous Spaces and Links of Industrial and Regional Policies
Based on the analysis of the industrial agglomerations as described above, one can illustrate
potential conflicts and complementarities among the policies of industrial and regional development
when implemented within very heterogeneous and fragmented economic spaces, as is the case in
Brazil. Before dealing with these illustrations, it is necessary to summarize industry’s spatial
organization and highlight its main characteristics.
There are few spatial industrial agglomerations (SIAs) in the country, and their geographic
distribution is limited to a few metropolitan areas and industrial hubs specialized in medium sized
companies, concentrated in the South/Southeast. These SIAs concentrate 75% of the IVA , and
practically all of the IVA of innovative, exporting and scale-intensive firms.
There are very few local industrial agglomerations (LIAs), and those that exist have little
participation in the industrial product. This fact limits the positive effects they might have on
production integration with non-industrial activities in their surroundings, especially agriculture, such
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