it is understood by agglomeration economies a stage of the industrialization process in which the installation of productive companies or economic activities is concentrated in a certain region of the geographic space.
In the industrialization process, investors seek to install their industries in strategically viable locations, the closest possible raw materials, and that have a vast consumer market and labor, in addition to an adequate infrastructure for the transport of goods.
This logic promotes industrial concentration both locally and regionally, which can directly reverberate in the production and transformation of geographic space. An example is the industrialization process in Brazil, in which productive advantages directed the secondary sector to the Southeast region of the country, especially to greater São Paulo. This concentration, however, is more punctual and does not cover the entire state, registering the presence of industrial activities, mainly in the ABC region of São Paulo.
The industrial centers formed usually receive a broad and dynamic infrastructure in terms of road network, transport, energy and communication, boosting dynamism industrial, the growth of cities and the consequent increase in the supply of labor force, attracting more and more industries and forming the agglomerations or economies of crowd. True industrial stains form.
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With the passage of time, this advantageous practice starts to be frowned upon by investors, since the growth of cities has direct effects on industrial production, such as the difficulty of transport due to the saturation of urban traffic, increase in property prices due to real estate speculation, increased union strength, among others factors.
This occurrence contributes to the migration of these industries to other regions that, in addition to offering structurally favorable conditions, offer tax incentives translated into reductions or exemptions from taxes. this is the call escape from industries, which provides the emergence of agglomeration diseconomies, which increase local unemployment and provoke a process of population and urban emigration in the affected region.
In the Brazilian case, the diseconomies of agglomeration contributed to a relative industrial deconcentration in the Brazilian Southeast, with migration of industries, mainly to the South and Midwest regions of the country, although the Southeast still leads the largest number of industries in the Brazil.
By Rodolfo Alves Pena
Graduated in Geography
Would you like to reference this text in a school or academic work? Look:
PENA, Rodolfo F. Alves. "Agglomeration Economies"; Brazil School. Available in: https://brasilescola.uol.com.br/geografia/economias-aglomeracao.htm. Accessed on June 27, 2021.
