Following the approach proposed by Gabaix (2011), this paper aims to assess the existence of granularity in the business cycle fluctuations of the following Spanish regions: the Community of Madrid, Catalonia, the Basque Country and the Valencian Community. Granular firms are those that represent a marginal proportion of the total number of firms in an economy, but nevertheless have a significant impact on fluctuations in the GDP growth rate. We find that the Basque Country and the Valencian Community are granular economies. The Community of Madrid and Catalonia, however, do not show granular behaviour. Therefore, our work provides evidence of granular behaviour at the regional level
