Sectoral scope and colocalisation of Spanish manufacturing industries

Abstract

In this paper, we use distance-based methods, specifically a slight variation of Ripley’s K function and a bivariate generalisation of this function, to explore the detailed location pattern of the Spanish manufacturing industry, the scope of localisation and the tendency towards colocalisation between horizontally and vertically linked industries. To do so, we use micro-geographic data, considering a narrowly defined industry classification. Our results show heterogeneous location patterns, but with a significant tendency towards localisation. The sectoral scope is very sensitive to the degree of homogeneity of the activities in each sector. The more homogeneous the activities in a specific sector are, the more similarities we find in the spatial location patterns among its industries. Finally, although the patterns of colocalisation detected are sensitive to the counterfactuals used, between 20 and 48% of the pairs of industries with strong input–output linkages considered in this study show a significant tendency to colocalisation, and among them 74% are vertically linked industries.