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Firm location and productivity in Spain

Adelheid Holl

INVESTIGACIONES REGIONALES - Journal of REGIONAL RESEARCH, 2013, issue 25, 27-42

Abstract: This paper presents an exploratory analysis of the relation between where a firm is located and its productivity. The analysis distinguishes two location characteristics measured at the municipality level: local agglomeration measured by population density and access to markets captured through market potential. The results show a significant positive relation between both local population density and market potential and firm-level productivity. The results further indicate that while productivity is higher in urban areas, the cross-sectional association between market potential and firm-level productivity appears higher outside urban areas.

Keywords: location; agglomeration; market potential; productivity (search for similar items in EconPapers)
JEL-codes: D24 R12 R30 R40 (search for similar items in EconPapers)
Date: 2013
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Citations: View citations in EconPapers (1)

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