Integration of markets and industrial concentration: evidence from Spain, 1856-1907

Abstract

The aim of this paper is to analyse the phenomena of trade liberalization and market integration in 19^th century Spain and their effect on the geographical concentration of industrial activity. This empirical analysis confirms the existence of positive relationships between the degree of scale economies and industrial concentration and also between the degree of centrality and industrial concentration. The empirical data on trade policy show that protectionist policies did not foster a geographical concentration of industry in the 19^th century Spanish economy.