São Paulo, Brasília and Rio de Janeiro concentrate major networks for national land management

IBGE is launching the study “Territory Flows and Networks: Land Management“, which maps out the country in terms of the municipal concentration of connections between company headquarters and their branches and between national public institutions.

The publication analyzes the relationship between municipalities considering the two most important institutions in terms of structuring of the space: the State and the market. The State is approached from the perspective of public management, of the structure formed by state institutions; business management is analyzed from the perspective of connections between headquarters and companies in different cities. The intensity of flows between cities is measured by the number of connection pairs, which interconnected to form business or public management networks.

Only 39.6% of the Brazilian municipalities are acknowledged as management centers, that is, those which have some level of concentration of intermunicipal connections; the other 60.4% either do not have entities representing the selected institutions or are not connected to the structure of company headquarters and branches.

The main management networks in the country are located in São Paulo and Brasília; the first one has relevant participation in the market and the second encompasses the headquarters of public institutions. Rio de Janeiro represents a second level of concentration, with a combination of the two types of networks, the business and the state one.

In 2011, São Paulo had a leading position over 1,442,425 external business management employees (working in branches outside the municipal boundaries of their respective headquarters), among whom 39% were concentrated within the limits of São Paulo state, and 61% were in other states. Rio de Janeiro had 580,019 employees (with 75,460 housed in São Paulo), and Brasília, 390,775, who were present in several areas all over the country.

The cities of São Paulo and Rio de Janeiro, made available, each, 97.8% of the business varieties classified as advanced services for support to enterprises in the country (services related to activities which require administrative, accounting, legal, financial and publicity inputs).

A little more than 70% of firms with branches in the municipality of São Paulo and headquarters out of it have headquarters in the Southeast region. Forty-nine percent of those headquarters are located in São Paulo state.

In business connections between cities, 24 of the 30 busiest pairs are formed by São Paulo and another municipality. The most relevant partner of São Paulo is Rio de Janeiro, followed by Porto Alegre. .

The full text of the study is available at “Territory Flows and Networks: Land Management“.


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