Agglomeration, accessibility and industrial location: evidence from spanish municipalities

This paper deals with the location decisions of manufacturing firms in Spain. We analyse how agglomeration economies and transport accessibility influence 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 econometric models) and some of the explanatory variables (local gross domestic product, road accessibility, and the characteristics of firms in neighbouring municipalities). The results show that agglomeration economies and accessibility are important in industrial location decision-making.