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Agglomeration economies in manufacturing industries: the case of Spain

  • Olga Alonso-Villar
  • Jose-MarIa Chamorro-Rivas
  • Xulia Gonzalez-Cerdeira

This study analyses the extent of geographical concentration of Spanish industry between 1993 and 1999, and studies the agglomeration economies that could underlie that concentration. The results confirm that there is major geographic concentration in a number of industries with widely varying characteristics, including high-tech businesses and those linked to the provision of natural resources as well as traditional industries. The analysis of the scope of spillovers behind this agglomeration supports the idea that transportation costs may induce plants in some industries to locate near their customers and suppliers. However, one cannot conclude that this is a common fact for all industries. This study also shows that the higher the technological level of an industry, the higher the agglomeration it experiences. This result implies the importance of the labour market, informational spillovers and producer services location for the agglomeration of these industries.

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Article provided by Taylor & Francis Journals in its journal Applied Economics.

Volume (Year): 36 (2004)
Issue (Month): 18 ()
Pages: 2103-2116

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Handle: RePEc:taf:applec:v:36:y:2004:i:18:p:2103-2116
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  1. Devereux, Michael P. & Griffith, Rachel & Simpson, Helen, 2004. "The geographic distribution of production activity in the UK," Regional Science and Urban Economics, Elsevier, vol. 34(5), pages 533-564, September.
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  6. Schmutzler, Armin, 1999. " The New Economic Geography," Journal of Economic Surveys, Wiley Blackwell, vol. 13(4), pages 355-79, September.
  7. Olga Alonso-Villar & José-María Chamorro-Rivas & Xulia González-Cerdeira, 2001. "An Analysis of the Geographic Concentration of Industry in Spain," Working Papers 0105, Universidade de Vigo, Departamento de Economía Aplicada.
  8. Henderson, Vernon & Kuncoro, Ari & Turner, Matt, 1995. "Industrial Development in Cities," Journal of Political Economy, University of Chicago Press, vol. 103(5), pages 1067-90, October.
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  10. Olga Alonso-Villar & Jos�-Mar�a Chamorro-Rivas, 2001. "How do producer services affect the location of manufacturing firms? The role of information accessibility," Environment and Planning A, Pion Ltd, London, vol. 33(9), pages 1621-1642, September.
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