A typology of local economic areas in argentina based on sectoral profiles of territorial coagglomeration (2011-2018)

Abstract

The study of regional productive specialization is key to designing territorial development policies. However, the measures commonly used do not take into account the interdependence between activities and present other problems related to the level of sectoral disaggregation. To overcome these limitations, we propose a new strategy to define regional specializations using multivariate analysis techniques, applied to data on formal and private salaried employment in Argentina. First, we form a set of sectoral profiles of territorial coagglomeration and, from them, we define an empirical typology of Local Economic Areas according to their production patterns. Our results show that the proposed methodology captures the interdependencies between activities, distinguishes different specializations within aggregated sectors, and accounts for both the type of specialization and the degree of productive diversity in the regions.