Integracion economica y localizacion industrial. Cataluna, la fabrica de Espana: cuando y por que?

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.