Transaction links through cities: ‘decision cities’ and ‘service cities’ in outsourcing by leading Brazilian firms

Most world city studies focus on where the provision of advanced producer services takes place, but in this study the location of the service clients are also taken into account. Production-service transactions are identified as links between ‘service city’ and ‘decision city’ (client HQ) and classified as intra-city (where a firms uses local (same city) services) and inter-city which may be domestic or foreign depending on whether the client uses services in or out of the country. Sampling the leading firms in Brazil, 218 transaction links are described and analysed in terms of cities, firm sectors, ownership and market. The analyses are used to inform a rereading of gateway city functions that takes into account the concentration/dispersal nexus in economic globalization. Thus, whereas the dominance of Sao Paulo in the Brazilian economy is confirmed, this is not interpreted as a simple gateway function with this one city ‘articulating’ the national economy into the world economy. A much more complex situation is revealed with by-passing of the gateway also much in evidence. The conclusion is that this shows concentration and dispersion of economic activity happening simultaneously in Brazil.