Agglomeration economies by type of productive activity in Machala-Ecuador

Authors

DOI:

https://doi.org/10.5281/zenodo.10296495

Keywords:

agglomeration economy, clustering, integration

Abstract

Agglomeration economics refers to the additional benefits and advantages that arise from the concentration of economic activities, industries, and businesses in a specific geographic area. In particular, companies benefit from agglomeration because they increase their access to factors that they contract for their internal production process. This article presents an analysis of the urban agglomeration in Machala, Ecuador; For this purpose, data from the National Economic Census are used to identify possible specialized clusters within the same economic activity or integrated between businesses of different economic activities. A descriptive and analytical methodology is applied based on spatial econometrics techniques and algorithms trained in the R program. The results show that only 3 of the 14 productive typologies of Machala present clustering and integration patterns: Agriculture, Commerce and Manufacturing. It is striking that a key sector for research and development, such as Science and Technology, shows neither association with each other nor integration with other productive activities. It is suggested that public policies be designed to allow a greater degree of integration between the sectors identified as having greater possibilities for clustering. Additionally, it is essential to apply a more in-depth study to identify why businesses dedicated to Science and Technology do not present grouping among themselves, nor integration with other economic sectors; given that their participation in innovation and development processes are vital for productive specialization in the territory. 

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Published

2023-11-02

How to Cite

López-Vera, J., Salazar-Sánchez, E., & Burgo-Bencomo, O. (2023). Agglomeration economies by type of productive activity in Machala-Ecuador. InveCom Journal, 4(1), 1-23. https://doi.org/10.5281/zenodo.10296495

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