Regional specialisation and industry location in the long run: Spain in the US mirror (1856-2002)
AbstractThis paper studies the long-run pattern of regional specialisation in Spain for the period 1856–2002. We have obtained an inverted U-shape trend in manufacturing specialisation which is similar to that in the USA. Using a model that nests factor endowments and increasing returns, we find that both the latter influence manufacturing location, albeit with variations over time, factor endowments being the most decisive. Manufacturing industries intensive in agricultural and mining inputs are located near regions with these factor endowments, while human capital location gained importance from 1965 onwards. Being located near the market was also significant for some industries. The inverted U-shape observed in manufacturing specialisation is due to the fact that the importance of immobile factors increased regional specialisation. However, when mobile factors increased, as was the case with skilled labour, and when this factor converged across regions, specialisation decreased. The fact that the importance of central markets diminishing also contributed to this trend.
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Bibliographic InfoArticle provided by Association Française de Cliométrie (AFC) in its journal Cliometrica, Journal of Historical Economics and Econometric History.
Volume (Year): 5 (2011)
Issue (Month): 3 (October)
Regional specialisation; Industry location; Factor endowments and increasing returns;
Find related papers by JEL classification:
- R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
- R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
- N - Economic History
- N9 - Economic History - - Regional and Urban History
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- Julio Martínez-Galarraga, 2014. "Market potential estimates in history: a survey of methods and an application to Spain, 1867-1930," Working Papers 0051, European Historical Economics Society (EHES).
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