In this paper we analyse the determinants of the localisation of industrial activity in Spain during the second half of the XIX century. In particular, we try to determine possible changes in the importance of the factors that explain industrial location in order to study the effects of economic integration in Spains industrial geography. To his aim, firstly we review the historical analysis of the changes experienced by Spains industrial geography during this period. Secondly, we summarise the different theories that explain location patterns. Thirdly, an empirical analysis of the geographic concentration of industries and industry location is performed. Fourthly, we carry out an econometrical analysis of the determinants of industrial location in two points of time, 1856 and 1893. Our results are consistent with trade theories. During the second half of the XIX century, Spain becomes an integrated economy, labour and capital mobility are favoured and hence, relative differences in factor endowments lose importance in explaining the pattern of industrial concentration. On the contrary, economic integration increased the importance of scale economies and proximity to the market as forces favouring the agglomeration of economic activities.
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Paper provided by Universitat de Barcelona. Espai de Recerca en Economia in its series Working Papers in Economics with number
63.
Length: 49 pages Date of creation: 2000 Date of revision: Handle: RePEc:bar:bedcje:200063
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Find related papers by JEL classification: N63 - Economic History - - Manufacturing and Construction - - - Europe: Pre-1913 R12 - Urban, Rural, and Regional Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography) F16 - International Economics - - Trade - - - Trade and Labor Market Interactions F14 - International Economics - - Trade - - - Country and Industry Studies of Trade F15 - International Economics - - Trade - - - Economic Integration