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Agglomeration economies in manufacturing industries: the case of Spain

Listed author(s):
  • Olga Alonso-Villar
  • José-María Chamorro-Rivas
  • Xulia González-Cerdeira

This paper analyses the extent of geographical concentration of Spanish industry between 1993 and 1999, and study 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, we cannot conclude this is a common fact for all industries. This paper 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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File URL: http://webX06.webs.uvigo.es/sites/default/files/wp0202.pdf
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Paper provided by Universidade de Vigo, Departamento de Economía Aplicada in its series Working Papers with number 0202.

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Length: 36 pages
Date of creation: Oct 2001
Handle: RePEc:vig:wpaper:0202
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Web page: http://webx06.webs.uvigo.es/
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  1. Elisenda Paluzie & Jordi Pons & Daniel Tirado, 2001. "Regional Integration and Specialization Patterns in Spain," Regional Studies, Taylor & Francis Journals, vol. 35(4), pages 285-296.
  2. repec:vig:wpaper:0103 is not listed on IDEAS
  3. Guy Dumais & Glenn Ellison & Edward L. Glaeser, 2002. "Geographic Concentration As A Dynamic Process," The Review of Economics and Statistics, MIT Press, vol. 84(2), pages 193-204, May.
  4. Masahisa Fujita & Paul Krugman & Anthony J. Venables, 2001. "The Spatial Economy: Cities, Regions, and International Trade," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262561476, January.
  5. Schmutzler, Armin, 1999. " The New Economic Geography," Journal of Economic Surveys, Wiley Blackwell, vol. 13(4), pages 355-379, September.
  6. Henderson, Vernon & Kuncoro, Ari & Turner, Matt, 1995. "Industrial Development in Cities," Journal of Political Economy, University of Chicago Press, vol. 103(5), pages 1067-1090, October.
  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. 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.
  9. Olga Alonso-Villar & José-María 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.
  10. Glaeser, Edward L & Hedi D. Kallal & Jose A. Scheinkman & Andrei Shleifer, 1992. "Growth in Cities," Journal of Political Economy, University of Chicago Press, vol. 100(6), pages 1126-1152, December.
    • Edward L. Glaeser & Hedi D. Kallal & Jose A. Scheinkman & Andrei Shleifer, 1991. "Growth in Cities," NBER Working Papers 3787, National Bureau of Economic Research, Inc.
    • Glaeser, Edward Ludwig & Kallal, Hedi D. & Scheinkman, Jose A. & Shleifer, Andrei, 1992. "Growth in Cities," Scholarly Articles 3451309, Harvard University Department of Economics.
  11. Haaland, J.I. & Kind, H.J. & knarvik, K.H.M. & Torstensson, J., 1998. "What Determines the Economic Geography of Europe?," Papers 19/98, Norwegian School of Economics and Business Administration-.
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