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Productive agglomeration and transport modal choice: a case study of São Paulo and Manaus industrial sector

Abstract:

The objective of this paper is to investigate the complementarity between two economic agglomerations (regions of São Paulo and Manaus) and to discuss the choice of the transportation mode between these two regions. São Paulo can be characterized as a mature and diversified agglomeration; while Manaus has a high specialization rate. Based on a proximity matrix, we can affirm that the two agglomerations have complementary production structures. As for the transportation network, trade occurs predominantly using the road-and-river mode and, in a smaller scale, using the short-sea shipping alternative. The migration potential for short-sea shipping is assessed by a discrete choice research. The results indicate that cargo migration depends on the characteristics of the transportation conditions (freights, transit time, service reliability and regularity) and on the production structure (such as aggregate value of the product and firm size).

Keywords:
economic agglomeration; discrete choice research; short-sea shipping

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