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Firm location and productivity in Spain

  • Holl , Adelheid


    (Instituto de Políticas y Bienes Públicos (IPP). CSIC - Consejo Superior de Investigaciones Científicas)

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.

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Article provided by Asociación Española de Ciencia Regional in its journal Investigaciones Regionales.

Volume (Year): (2013)
Issue (Month): 25 ()
Pages: 27-42

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Handle: RePEc:ris:invreg:0197
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