Accessibility and Industrial Location: evidence from Spain

Angel Alañon Pardo (aalanonp@ucm.es) and Josep-Maria Arauzo-Carod

No 09-01, Documentos de trabajo de la Facultad de Ciencias Económicas y Empresariales from Universidad Complutense de Madrid, Facultad de Ciencias Económicas y Empresariales

Abstract: This paper deals with location decisions of manufacturing firms in Spain. We analyse how agglomeration economies and, especially, transport accessibility influence location decisions of firms. During the 1990s there was an intense programme of high capacity road construction which improved accessibility to municipalities. We analyse the location decisions of firms at municipality level and in three industries. The main empirical contributions of this paper are the econometric techniques used (spatial econometrics models) and some of the explanatory variables (local added value, road accessibility, and the characteristics of firms in neighbouring municipalities). The results show that agglomeration economies (including road network improvements) are important in industrial location decision-making.

Keywords: Accessibility; Industrial location; Spatial statistics and spatial econometrics.; Accesibilidad; Localización industrial; Estadística espacial y econometría espacial. (search for similar items in EconPapers)
Pages: 41 pages
Date: 2009
New Economics Papers: this item is included in nep-cse, nep-geo and nep-ure
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