marginally, the existence of municipalities with some but not statistically significant industrial
production. This is because the correlation among neighbor non-industrial municipalities (LL)
prevailed in the significance test over the correlation between the high value of the reference
municipality and the low average value of its neighbors (HL). In this case, this municipality was
defined as an Industrial Enclave (IE) after reaching a minimum level of industrial production.
And finally, type 4 (LH) may reveal two distinct phenomena. The first refers to the geographical
limits of the industrial agglomerations, indicating the restrictive and excluding nature of the
reproduction of industrial activity in the space. The second reveals a phenomenon similar to type 2
(HL), i.e., the existence of localized industrial production in a single municipality, which does not
reach the expected level of significance (H) but, on the other hand, lends significance to the
downstream IVA neighbor (L). In this case, it will be classified as an Industrial Enclave (IE) and,
possibly, as a Localized Industrial Agglomeration (LIA) if neighbor non-industrial municipalities have
a high per capita income, close to the level of the industrial municipality. 4
Figure 2 shows the industrial concentration of companies per municipality, with a higher
occurrence of SIAS in the South and Southeast regions (High-High). Generally, Low-High
classification applies to areas surrounding HH agglomerations, but also in some isolate points. A High-
Low classification denotes industrial enclaves or localized industrial agglomerations.
As shown in Table 2, there are only 15 SIAs, in a restricted group of 254 out of 5,507 Brazilian
municipalities, accounting for 75% of the industrial production of the companies operating in the
country. In addition, more than 90% of the production in these agglomerations is from type A and B
companies, which suggests the existence of barriers preventing C type companies entering such spatial
agglomerations. The spatial distribution of SIAs is notably concentrated in Brazil, particularly in
clearly delimited industrial corridors across the South and Southeast regions (Figure 2). The Northeast
Region has SIAs that are confined within metropolitan areas of major state capitals and no SIA was
identified in the North Region, despite the significant contribution of Manaus Free-Trade Zone to the
national industrial production. In turn, the absence of SIAs in the Central region reveals that intense
agribusiness expansion over the last two decades has not been sufficient to build industrial density
needed to produce spillover and industrial effects over the space.
In addition to the criteria already defined for the identification of local agglomerations (LIAs) and
industrial enclaves (IEs), based on the Spatial Analysis’ types 2 (HL), 3 (LL) and 4 (LH), we have
4 See Lemos et al (2005-a and 2005-b) for more details on the classification of agglomerations and enclaves.