Daisuke Nakamura, Ph.D., Economia, Universidad Católica del Norte and Regional Economics Applications Laboratory (REAL) at UIUC, Avenida Angamos 0610, 607 S. Mathews, #318, Urbana, IL 61801-3671, Antofagasta, 61801-3671, Chile and Miguel Atienza, Ph.D., Economia, Universidad Católica del Norte, Avenida Angamos 0610, Antofagasta, 0610, Chile.
There are two types of agglomeration economies working in Chile characterized by a clearly defined geographical pattern. One is at the core of the country where central-place system works together with urbanization type of agglomeration economies and whose output is predominantly oriented towards the domestic market. The other is at the peripheral regions where export-oriented natural resources-intensive activities are operated with localization type of agglomeration economies. Within this framework, accessibility to the center of the country may have less importance as governmental public policy for local peripheral producers. However, this becomes an issue when examined from the standpoint of individuals living in the periphery, where almost all commodities are distributed from the center of the country. It is argued that the central-place system model is appropriate to explain how location decisions are taken within the core area. By contrast, New Economic Geography models are needed to apply when the relationship between metropolitan core area and the peripheral regions of the country is investigated.