Accessibility and Industrial Location. Some Evidence from Spain

Angel Alañon Pardo () and Josep-Maria Arauzo-Carod

No 214, Studies on the Spanish Economy from FEDEA

Abstract: During the 1990s an intense programme of high capacity road construction was carried out in the Spanish road network. This considerably improved accessibility to municipalities. The aim of this paper is to determine whether this greater accessibility has had positive effects on the creation of industrial establishments. We analyze the location decisions of firms at a municipality level and in 2-digit manufacturing industries (11 industries). The main contributions of this paper are the variables and econometric techniques we use. As well as the usual variables, such as specialization or the diversification of the labour force, we use more innovative variables such as local added value, road accessibility, and the characteristics of firms in neighbouring municipalities. Our econometric techniques are space models with discrete dependent variables.

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