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Agglomeration Economies in Semi-industrialized Countries: Evidence from Argentina

Author

Listed:
  • 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)

Abstract

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.

Suggested Citation

  • José A. Borello & Hernán Morhorlang & Diego Silva Failde, 2011. "Agglomeration Economies in Semi-industrialized Countries: Evidence from Argentina," Institutions and Economies (formerly known as International Journal of Institutions and Economies), Faculty of Economics and Administration, University of Malaya, vol. 3(3), pages 487-518, October.
    • Handle: RePEc:umk:journl:v:3:y:2011:i:3:p:487-518
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    - agglomeration economies; Argentina; automotive industry; external economies; linkages; semi-industrialized countries; steel;
    All these keywords.

    JEL classification:

    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
    • P23 - Political Economy and Comparative Economic Systems - - Socialist and Transition Economies - - - Factor and Product Markets; Industry Studies; Population
    • P25 - Political Economy and Comparative Economic Systems - - Socialist and Transition Economies - - - Urban, Rural, and Regional Economics

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