Spatial distribution of economic activities: a network approach

Abstract

The aim of this paper is to analyse co-location patterns of manufactures and service industries at a microgeographic level using Spanish data from the Mercantile Register. Our approach allows us to analyse joint-location and co-location patterns of firms in different industries, and to overcome previous technical constraints in this type of analyses, partially thanks to using homogeneous cells instead of administrative units. This paper contributes to the empirical literature on industry location by developing a multisectorial co-location index computed by comparing differences between observed data about firms’ location and randomly generated data. Multisectorial relationships are analyzed by transposing bilateral relations onto an n-dimensional space. Our results show that dispersed industries tend to locate jointly and that industries with lower joint-location patterns have spatial structures similar to those obtained through input–output relationships, suggesting weak role of co-location patterns as interindustry linkages are not the main location determinants.