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Firm location and productivity in Spain

Author

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  • Holl, Adelheid

    (Instituto de Políticas y Bienes Públicos (IPP). CSIC)

Abstract

This paper presents an exploratory analysis of the relation between where a firm is located and its productivity. The analysis distinguishes two location characteristics measured at the municipality level: local agglomeration measured by population density and access to markets captured through market potential. The results show a significant positive relation between both local population density and market potential and firm-level productivity. The results further indicate that while productivity is higher in urban areas, the cross-sectional association between market potential and firm-level productivity appears higher outside urban areas. Localización y productividad de la empresa española Este artículo presenta un análisis exploratorio de la relación que existe entre la localización de una empresa y su productividad. El estudio distingue dos características de localización medidas a nivel municipal: la aglomeración local,medida a través de la densidad de población, y el acceso a mercados, basado en un índice de potencial de mercado. Los resultados muestran una relación positiva y significativa de la productividad de las empresas, y tanto la densidad de población como el potencial de mercado. Además, mientras que la productividad de las empresas es mayor en las áreas urbanas, en municipios fuera de las áreas urbanas la asociación estadística en sección cruzada entre el potencial de mercado y la productividad parece mayor.

Suggested Citation

  • Holl, Adelheid, 2013. "Firm location and productivity in Spain," INVESTIGACIONES REGIONALES - Journal of REGIONAL RESEARCH, Asociación Española de Ciencia Regional, issue 25, pages 27-42.
    • Handle: RePEc:ris:invreg:0227
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    References listed on IDEAS

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    More about this item

    Keywords

    location; agglomeration; market potential; productivity;
    All these keywords.

    JEL classification:

    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
    • R30 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - General
    • R40 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - General

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