Informal and Community-Based Agglomeration: Development and Change in the Garment Industry of Buenos Aires

This article explores the interplay between formal and informal economic activities in the garment industry of Buenos Aires. Focusing on the emergent cluster in Villa Celina, it examines how immigrant‐led social and economic networks intersect with policy shifts and economic pressures to shape production geographies. The case underscores the importance of informal and community‐based practices in enabling clustering in low‐tech, high‐touch manufacturing. The findings enrich agglomeration theory by showing how industrial clusters in contexts of informality and limited state support rely not only on conventional drivers but especially on informal governance and adaptive place‐based community networks. These embedded and often invisible dynamics sustain production and enable spatial concentration under constraint. Informal economies generate their own trust‐based external economies, including shared resources and logistical systems, both of which support ongoing activity and attract formal firms seeking to tap into these networks. The study concludes with implications for rethinking zoning and regulatory frameworks to better accommodate inclusive and diverse forms of urban manufacturing.