An industry without grounds: understanding the locational patterns of manufacturing firms in the city of Lima, Peru

Author/s: Sergio Malatesta

Creation date: 2014-11-06

Contact info: sergio_malatesta@yahoo.com

Senior supervisor: Peter Hall 

Keywords:  Lima, Peru, location factors, global value chains, industrial location theory, manufacturing

Geographic focus: Lima, Peru; Peru; South America

Research question/s: What are the locational patterns and challenges of manufacturing firms in the city of Lima, Peru?

Significance

Like many other cities, Lima, Peru, is dealing with an unplanned housing boom, which in turn has put pressure on its industrial lands and firms - in some cases triggering manufacturing firms to move to the city’s outskirts in search of cheaper land. When industry moves out of the city, several other activities move with it, which can result in increased infrastructure costs, inefficient service provision and environmental degradation, among other negative consequences. It is therefore important to understand why manufacturing firms choose to locate in a particular country, city or district. This work will be of interest to planners , policy-makers and others concerned with industrial location theories and the relationships between industrial actvity and land use and transportation planning. It will also be of interest to those wanting to learn more about manufacturing in Lima, Peru in particular and South America more generally.

Findings

The author created and analyzed a location database of Lima’s medium and large industrial firms and conducted in-depth interviews. The findings support a case for the protection and promotion of central industrial lands while also developing a theory for best practices in outskirt locations.