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Were Spanish migrants attracted by industrial agglomerations? An analysis for the interwar years in the light of the new economic geography

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  • Jordi Pons Novell
  • Javier Silvestre
  • Daniel Aurelio Tirado Fabregat
  • Elisenda Paluzie Hernandez

    (Universitat de Barcelona)

Abstract

In this paper we examine whether access to markets had a significant influence on migration choices of Spanish internal migrants in the inter-war years. We perform a structural contrast of a New Economic Geography model that focus on the forward linkage that links workers location choice with the geography of industrial production, one of the centripetal forces that drive agglomeration in the NEG models. The results highlight the presence of this forward linkage in the Spanish economy of the inter-war period. That is, we prove the existence of a direct relation between workers localization decisions and the market potential of the host regions. In addition, the direct estimation of the values associated with key parameters in the NEG model allows us to simulate the migratory flows derived from different scenarios of the relative size of regions and the distances between them. We show that in Spain the power of attraction of the agglomerations grew as they increased in size, but the high elasticity estimated for the migration costs reduced the intensity of the migratory flows. This could help to explain the apparently low intensity of internal migrations in Spain until its upsurge during the 1920s. This also explains the geography of migrations in Spain during this period, which hardly affected the regions furthest from the large industrial agglomerations (i.e., regions such as Andalusia, Estremadura and Castile-La Mancha) but had an intense effect on the provinces nearest to the principal centres of industrial development.

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Bibliographic Info

Paper provided by Universitat de Barcelona. Espai de Recerca en Economia in its series Working Papers in Economics with number 121.

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Length: 34 pages
Date of creation: 2004
Date of revision:
Handle: RePEc:bar:bedcje:2004121

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Postal: Espai de Recerca en Economia, Facultat de Ciències Econòmiques. Tinent Coronel Valenzuela, Num 1-11 08034 Barcelona. Spain.
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References

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  1. Pérez, Concha Betrán, 1999. "Difusión y localización industrial en España durante el primer tercio del siglo XX," Revista de Historia Económica, Cambridge University Press, Cambridge University Press, vol. 17(03), pages 663-696, December.
  2. Joan R. Rosés & Blanca Sánchez-Alonso, 2002. "Regional Wage Convergence In Spain 1850-1930," Working Papers in Economic History wh025301, Universidad Carlos III, Departamento de Historia Económica e Instituciones.
  3. Chiswick, Barry R. & Hatton, Timothy J., 2002. "International Migration and the Integration of Labor Markets," IZA Discussion Papers 559, Institute for the Study of Labor (IZA).
  4. TABUCHI, Takatoshi & THISSE, Jacques-François, 2001. "Taste heterogeneity, labor mobility and economic geography," CORE Discussion Papers, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE) 2001044, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
  5. Paul Krugman, 1990. "Increasing Returns and Economic Geography," NBER Working Papers 3275, National Bureau of Economic Research, Inc.
  6. Ros S, Joan R., 2003. "Why Isn't the Whole of Spain Industrialized? New Economic Geography and Early Industrialization, 1797 1910," The Journal of Economic History, Cambridge University Press, Cambridge University Press, vol. 63(04), pages 995-1022, December.
  7. Gordon H. Hanson, 1998. "Market Potential, Increasing Returns, and Geographic Concentration," NBER Working Papers 6429, National Bureau of Economic Research, Inc.
  8. Daniel A. Tirado & Elisenda Paluzie & Jordi Pons, 2002. "Economic integration and industrial location: the case of Spain before World War I," Journal of Economic Geography, Oxford University Press, Oxford University Press, vol. 2(3), pages 343-363, July.
  9. Kevin H. O'Rourke & Jeffrey G. Williamson, 2001. "Globalization and History: The Evolution of a Nineteenth-Century Atlantic Economy," MIT Press Books, The MIT Press, The MIT Press, edition 1, volume 1, number 0262650592, December.
  10. Keith Head & John Ries, 2001. "Increasing Returns versus National Product Differentiation as an Explanation for the Pattern of U.S.-Canada Trade," American Economic Review, American Economic Association, American Economic Association, vol. 91(4), pages 858-876, September.
  11. Matthieu Crozet, 2004. "Do migrants follow market potentials? An estimation of a new economic geography model," Journal of Economic Geography, Oxford University Press, Oxford University Press, vol. 4(4), pages 439-458, August.
  12. George R. Boyer & Timothy J. Hatton, 1997. "Migration and Labour Market Integration in Late Nineteenth-Century England and Wales," Economic History Review, Economic History Society, Economic History Society, vol. 50(4), pages 697-734, November.
  13. repec:cup:jechis:v:63:y:2004:i:04:p:995-1022_00 is not listed on IDEAS
  14. Castañeda, Lluis & Tafunell, Xavier, 1993. "Un nuevo indicador para la historia financiera española: La cotizacion de las letras de cambio a corto plazo," Revista de Historia Económica, Cambridge University Press, Cambridge University Press, vol. 11(02), pages 367-383, September.
  15. Sicsic, Pierre, 1992. "City-Farm Wage Gaps in Late Nineteenth-Century France," The Journal of Economic History, Cambridge University Press, Cambridge University Press, vol. 52(03), pages 675-695, September.
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Cited by:
  1. Rosa Sanchis-Guarner & Enrique Lopez-Bazo, 2006. "Are Skilled Workers More Attracted to Economic Agglomerations?," ERSA conference papers ersa06p120, European Regional Science Association.

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  1. Historical Economic Geography

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