PRODUCTION AGGLOMERATIONS OF THE SOUTHERN REGION OF BRAZIL AND ITS RELATIONSHIP WITH INDUSTRIAL PRODUCTIVITY

Abstract

This paper aims to analyze the effect of agglomeration economies (urbanization and specialization) on the industrial productivity of southern municipalities, between the years 2001 and 2015. The hypothesis is that the economies of specialization and urbanization, from agglomerations, can lead to productivity gains for each municipality and its wrap. To achieve this objective, an industry development index (IDI), an index developed by Sabóia and Kubrusly (2008), and econometric models were computed using the space panel, considering the years 2001, 2005, 2010 and 2015. As a corollary, the economies of urbanization have an impact on the productivity of the southern municipalities, showing a positive effect until a certain municipal size, from which, it has a negative effect. In the case of the externalities of the specialized agglomerations, a statistically significant relation was not identified.