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Agglomeration Economies in Semi-industrialized Countries: Evidence from Argentina


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  • José A. Borello

    (Instituto del Conurbano Universidad Nacional de General Sarmiento/CONICET Argentina)

  • Hernán Morhorlang

    (Instituto de Industria Universidad Nacional de General Sarmiento Argentina)

  • Diego Silva Failde

    (Instituto de Industria Universidad Nacional de General Sarmiento Argentina)

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    This paper identifies and problematizes three gaps in the existing literature on agglomeration economies. First, it argues that the ontology of agglomeration economies, the way in which these economies are conceptualized, needs to be revised. Far from being something “in the air” for all firms to profit from them, tapping these economies requires a conscious and sustained effort from firms. Second, it takes issue with the idea that the functioning of agglomeration economies in semi-industrialized countries can be read off simply from the experience of industrialized ones. Third, the paper challenges current ideas on the geographical extent of urbanization and localization economies within a metropolitan area. The empirical evidence gathered from a detailed survey of 134 manufacturing firms in the automotive and steel sectors located in the Buenos Aires Metropolitan Region (BAMR, includes the city proper and the surrounding suburbs) allows us to conclude that localization economies are not necessarily confined to neighbourhoods.

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    Bibliographic Info

    Article provided by Faculty of Economics and Administration, University of Malaya in its journal Institutions and Economies (formerly known as International Journal of Institutions and Economies).

    Volume (Year): 3 (2011)
    Issue (Month): 3 (October)
    Pages: 487-518

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    Handle: RePEc:umk:journl:v:3:y:2011:i:3:p:487-518

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    Keywords: - agglomeration economies; Argentina; automotive industry; external economies; linkages; semi-industrialized countries; steel;

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    1. repec:idb:brikps:40778 is not listed on IDEAS
    2. Paul Krugman, 1992. "Geography and Trade," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262610868, December.
    3. Gabriel Yoguel & Marta Novick & Anabel Marin, 2000. "Production Networks Linkages, Innovation Processes and Social Management Technologies. A Methodological Approach Applied to the Volkswagen case in Argentina," DRUID Working Papers 00-11, DRUID, Copenhagen Business School, Department of Industrial Economics and Strategy/Aalborg University, Department of Business Studies.
    4. Gabriel Yoguel & Analia Erbes & Veronica Robert & Jose Borello, 2007. "Diffusion and appropriation of knowledge in different organizational structures," The Other Canon Foundation and Tallinn University of Technology Working Papers in Technology Governance and Economic Dynamics 13, TUT Ragnar Nurkse School of Innovation and Governance.
    5. Kurt Dopfer & John Foster & Jason Potts, 2004. "Micro-meso-macro," Journal of Evolutionary Economics, Springer, vol. 14(3), pages 263-279, 07.
    6. Rajah Rasiah, 2011. "The Role of Institutions and Linkages in Learning and Innovation," Institutions and Economies (formerly known as International Journal of Institutions and Economies), Faculty of Economics and Administration, University of Malaya, vol. 3(2), pages 165-172, July.
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