Geographical Distribution of the Industry in Ecuador: Concentration and Urbanization Factors

Abstract

The research presented in this document aims to measure the geographical concentration for the period 1980–2010 of industrial activities in Ecuador and establish a possible relationship between the localization of industrial sectors and the urbanization levels of cities. The analysis of the geographical concentration of the 26 manufacturing sectors will be conducted by calculating the spatial concentration indices of industrial activity for each of the sectors. Four indicators are mainly used, the relative concentration, the Hirschman-Herfindahl index, the Gini locational coefficient and the Ellison and Glaeser concentration index. To analyse the relationship between urban agglomerations and industrial location, we use the methodology proposed by Holmes and Stevens. The results indicate the existence of geographical concentration as there is an average employment concentration above 70% in most sectors. The Tobacco Product Manufacturing industry is the most concentrated along with Other Chemical Manufacturing. On the other hand, a relationship is established between the industrial location and the degree of urbanization of the cities; there is no sector that operates in contexts of low concentration and urbanization. The results generated allow to conclude the coexistence of diversified and specialized areas within the same urban systems.