Firm location and productivity in Spain

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 mark...

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Bibliographic Details
Main Author: Adelheid Holl
Format: Article
Language:English
Published: AECR 2013-01-01
Series:Investigaciones Regionales - Journal of Regional Research
Subjects:
Online Access:http://www.aecr.org/images/ImatgesArticles/2013/5/2_Holl.pdf
Description
Summary: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.
ISSN:1695-7253