Edited by Ana Condeço-Melhorado, Aura Reggiani and Javier Gutiérrez
Chapter 10: Location, accessibility and firm-level productivity in Spain
This chapter presents an empirical analysis of the relation between location characteristics and productivity using Spanish firm-level data. Both urban agglomeration and better transport accessibility can provide firms with access to denser and larger markets, and thus help firms to improve efficiency and increase productivity. The analysis distinguishes different location characteristics at the spatially detailed level of municipalities: local population size, local population density, and access to markets in other locations captured through a transport infrastructure-based market potential measure. The results show a significant positive productivity effect of all three location characteristics tested. However, at the geographically detailed level of municipalities, location measures based on transport accessibility better capture the benefits of location.
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