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Assessing the tendency of Spanish manufacturing industries to cluster: Co-localization and establishment size

  • Marta Casanova

    ()

    (Dpto. Economía)

  • Vicente Orts Ríos

    (Dpt. Economia)

In this paper, we use a distance-based method, specifically the Ripley’s K function, to evaluate the spatial location patterns of Spanish manufacturing establishments and to assess the different tendencies to cluster in each sector or subsector relative to the whole of manufacturing. Specifically, we analyse the role played by the size of establishments in determining the location patterns detected in each sector, and the co-localization between horizontally- and verticallylinked industries to assess the importance of the potential spillovers across industries. We apply this methodology to Spanish manufacturing industries at the two-digit and the four-digit levels. Considering four digits of disaggregation allows us to isolate the different behaviour in the spatialdistribution of each subsector as well as prevent the effects of compensation due to previous aggregation. En este trabajo se utiliza un método basado en la distancia, específicamente la función K de Ripley, para analizar los patrones de localización espacial de los establecimientos manufactureros españoles y evaluar las diferentes tendencias a concentrarse de cada sector o subsector en relación con el conjunto de la industria manufacturera. En concreto, se analiza el papel que desempeña el tamaño de los establecimientos en la determinación de los patrones de localización detectados en cada sector. Así mismo, se evalúa la importancia de los spillovers potenciales entre las diferentes industrias o subsectores mediante un análisis de la tendencia a la co-localización entre empresas de industrias relacionadas horizontal y verticalmente. Aplicamos esta metodología a las industrias manufactureras españolas con un nivel de desagregación de dos y cuatro dígitos CNAE. El hecho de considerar cuatro dígitos de desagregación nos permitedetectar las diferencias en el comportamiento de la distribución espacial de cada subsector, así como prevenir los efectos de compensación debidos a la agregación anterior.

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File URL: http://www.ivie.es/downloads/docs/wpasec/wpasec-2011-03.pdf
File Function: Fisrt version / Primera version, 2011
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Paper provided by Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie) in its series Working Papers. Serie EC with number 2011-03.

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Length: 29 pages
Date of creation: Jun 2011
Date of revision:
Publication status: Published by Ivie
Handle: RePEc:ivi:wpasec:2011-03
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  1. Marshall, Alfred, 1890. "The Principles of Economics," History of Economic Thought Books, McMaster University Archive for the History of Economic Thought, number marshall1890.
  2. Michael P. Devereux & Rachel Griffith & Helen Simpson, 2000. "The Geographic Distribution of Production Activity in the UK," Econometric Society World Congress 2000 Contributed Papers 1397, Econometric Society.
  3. Maurel, Francoise & Sedillot, Beatrice, 1999. "A measure of the geographic concentration in french manufacturing industries," Regional Science and Urban Economics, Elsevier, vol. 29(5), pages 575-604, September.
  4. Puga, Diego, 2001. "European Regional Policies in Light of Recent Location Theories," CEPR Discussion Papers 2767, C.E.P.R. Discussion Papers.
  5. Ellison, Glenn & Glaeser, Edward L, 1997. "Geographic Concentration in U.S. Manufacturing Industries: A Dartboard Approach," Journal of Political Economy, University of Chicago Press, vol. 105(5), pages 889-927, October.
  6. Marius Brülhart, 2001. "Evolving geographical concentration of European manufacturing industries," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 137(2), pages 215-243, June.
  7. Rosenthal, Stuart S. & Strange, William C., 2001. "The Determinants of Agglomeration," Journal of Urban Economics, Elsevier, vol. 50(2), pages 191-229, September.
  8. Venables, Anthony J, 1995. "Economic Integration and the Location of Firms," American Economic Review, American Economic Association, vol. 85(2), pages 296-300, May.
  9. Paul Krugman, 1990. "Increasing Returns and Economic Geography," NBER Working Papers 3275, National Bureau of Economic Research, Inc.
  10. Eric Marcon & Florence Puech, 2003. "Evaluating the geographic concentration of industries using distance-based methods," Journal of Economic Geography, Oxford University Press, vol. 3(4), pages 409-428, October.
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