Publication: Why isn't the whole of Spain industrialized? the localization of Spanish manufacturing during the early industrialization (1797-1910)
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2000-10
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Abstract
The regions of Spain provide a unique opportunity to study the causes of regional differences in
industrial development because manufacturing concentration and regional specialization rose
substantially during the early phases of industrialization. I employ a model nesting HeckscherOhlin
and Economic Geography Frameworks to study that phenomenon, and fmd that
comparative advantage and increasing returns effects were economically very significant and
practically explained all differences in industrialization levels across regions. The deficit
(surplus) of some regions in industrialization appears to have been largely attributable to their
factor endowments and the absence (presence) of home markets effects for industries with
increasing returns.
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Heckscher-Ohlin model, Increasing returns, Economic Geography