Neo‐Endogenous Local Development, Tourism, and International Immigration in El Hierro, Spain

Cristóbal Mendoza, Josefina Domínguez‐Mujica, Juan Manuel Parreño‐Castellano and Claudio Moreno‐Medina

Tijdschrift voor Economische en Sociale Geografie, 2025, vol. 116, issue 2, 131-145

Abstract: This article studies the role of international immigrants on enhancing economic and social diversity in El Hierro, potentially attracting more people, investment, and valorising local communities. It emphasizes the key characteristics of immigrants' entrepreneurs, including their diverse backgrounds as lifestyle/labour immigrants, competence in languages, typically low initial capitalization and often lack of prior entrepreneurial experience. Despite initial limited professionalization, these entrepreneurs introduce innovations in services and products and cultivate social capital within the local community, particularly among other foreign‐born immigrants, and through transnational networks. This social capital is built upon personal relationships and mutual trust, promoting horizontal integration among businesses. These factors contribute to making the island a prime example of neo‐endogenous development in left‐behind areas. Yet, a high dependence on personal networks and local economic assets may affect negatively local development which needs more formalized and institutionalized support to create business environments for collaboration among stakeholders.

Date: 2025
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