Regional Distribution of Foreign Manufacturing Investment in Spain. Do Agglomeration Economies Matter?

This paper examines the locational determinants of foreign direct investment (FDI) in manufacturing activities in the regions of Spain, with particular attention to agglomeration factors, and the effect of these determinants on three separate industries. The analysis reveals that agglomeration economies are significant determinants of the regional distribution of manufacturing FDI, and that the nature and importance of locational determinants vary according to the specific needs of each industry.