Agglomeration economies in manufacturing industries: the case of Spain

This study analyses the extent of geographical concentration of Spanish industry between 1993 and 1999, and studies the agglomeration economies that could underlie that concentration. The results confirm that there is major geographic concentration in a number of industries with widely varying chara...

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Bibliographic Details
Published in:Applied economics 2004-10, Vol.36 (18), p.2103-2116
Main Authors: Alonso-Villar, Olga, Chamorro-Rivas, José-MarÍa, González-Cerdeira, Xulia
Format: Article
Language:English
Subjects:
Agglomeration
Applied economics
Case studies
Geography
Industry
Manufacturing
Spain
Studies
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Summary:This study analyses the extent of geographical concentration of Spanish industry between 1993 and 1999, and studies the agglomeration economies that could underlie that concentration. The results confirm that there is major geographic concentration in a number of industries with widely varying characteristics, including high-tech businesses and those linked to the provision of natural resources as well as traditional industries. The analysis of the scope of spillovers behind this agglomeration supports the idea that transportation costs may induce plants in some industries to locate near their customers and suppliers. However, one cannot conclude that this is a common fact for all industries. This study also shows that the higher the technological level of an industry, the higher the agglomeration it experiences. This result implies the importance of the labour market, informational spillovers and producer services location for the agglomeration of these industries.
ISSN:0003-6846
1466-4283
DOI:10.1080/0003684042000264029