Abstract

URDANETA, Armando José  and  BORGUCCI GARCIA, Montiel Emmanuel Victorio. Agglomeration economies and negative externalities in Ecuador, 2007-2017. Cuad. Econ. [online]. 2021, vol.40, n.82, pp.165-191.  Epub Mar 01, 2021. ISSN 0121-4772.  https://doi.org/10.15446/cuad.econ.v40n82.81058.

This paper analyses the cantonal gross value added of Ecuador from the agglomeration economy approach, based on theories: Krugman (1998), Frost (2017) and Boussauw et al. (2018). The research, of descriptive and analytical character, delimits in 4 clusters the units of analysis. The results confirm the presence of agglomeration economies in the Quito and Guayaquil cantons, resulting in territorial inequalities and negative externalities, which generate diseconomies of scales. Market competition, as Myrdal (1957/1962) and Krugman (1992) express, results in the generation of interregional disparities between these districts and their neighbouring regions.

JEL: R1, R11, R12, R32.

Keywords : Gross value added; agglomeration economies; negative externalities; diseconomies of scale.

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