Cluster Analysis using Microgreographic data

In this paper we try to identify manufacturing and service clusters in Spain, using data from Mercantile Registers of 2006. The proposed methodology partially follows contributions of Duranton and Overman (2005), Brenner (2003 and 2004) and Ellison and Glaser (1997), but departing from them we improve such approaches by several ways. In order to sum up, we can detail our approach and divide it into five stages. Firstly, we divide space into homogeneous cells. Secondly, we create industry specific maps departing from firms’ georeferenced data. Thirdly, we create multiple random industry specific maps under two conditions: i) total number of firms at each industry remains constant and ii) total number of firms at each cell remains constant. Fourthly, we compare the observed spatial distribution of firms with random simulations of such distribution and we check if there is some kind of concentration compared to the random distribution. Fifthly, for each industry we map the areas where the concentration of firms is significantly higher than expected. Previous scheme allows us to identify real clusters (of different shapes and sizes) for all range of manufacturing and service activities and to use this information to design public policies related to such industries. Keywords: cluster analysis, geographic data, microeconomics, regional economics.

Industrial Location At the Intra-Metropolitan Level: A Negative Binomial Approach

The objective of this paper is to analyse the incidence of agglomeration economies on the new firms’ location decisions inside metropolitan areas. Following the literature we consider that agglomeration economies are related to the concentration of an industry (location economies) and/or the size of the city itself (urbanisation economies). We assume that those economies differ according the technological level of firms. So we use a sample of new firms belonging to high, intermediate and low technology levels. Our results confirm those sectoral differences and show some interesting location patterns of manufacturing firms Taking into account the renovated debate about the importance of the geography and distance in the location of economic activity, we introduce in the estimation the effect of the central city size as determinant for the location of new firms in the rest of the metropolitan area. This allows us to analyse if a suburbanisation effect exists and if that effect is the same depending on the industry and the central city size of the metropolitan area. Our main statistical source is the REI (Spanish Industrial Establishments Register), which has plant-level microdata for the creation and location of new industrial firms.

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.Agglomeration, Accessibility, Industrial location, Spatial econometrics, Spain