European Regional Science Association 36 th European Congress ETH Zurich, Switzerland August 1996

Transcription

1 European Regional Science Association 36 th European Congress ETH Zurich, Switzerland August 1996 Maria Josefa García Grande Universidad de Valladolid, Spain Carlos Borondo Arribas Universidad de Valladolid, Spain DECISIVE FACTORS IN THE GEOGRAPHICAL LOCATION OF FOOD INDUSTRY IN SPAIN ABSTRACT: In this paper we determine the present and past location of the different subsectors within the Food, Beverages and Tobacco (FBT) sector, in order to know what is the pattern of location and if it has been modified throughout the last years ( ). The hypothesis tested is that the agrarian production constitutes the relevant attraction factor for the FBT firms, against the alternative that the factors guiding the location are similar to those of the rest of the industrial sectors. We carry out the analysis with 19 subsectors and 50 provinces to prevent the effect of aggregation, since the subsectors are very heterogeneous. Our conclusions contradict, although not in all cases, the established idea that the main location factor in the raw input.

2 1.- INTRODUCTION. The geographical distribution of the industrial activity is not homogeneous, but tends to be concentrated in certain areas. According to a recent work by Callejón and Costas (1996), the degree of territorial concentration of Spanish industry is quite high, though there are important differences among sectors: concentration is maximum in "Office-supply Machines", "Aircraft" or "Pharmaceutical Products", and much smaller in "Concrete and derivatives" and "Foods, Beverages and Tobacco". It is customary that in the studies that analyse the factors that determine the location of an industry, various hypothesis are handled and different variables are studied. It does not tend to occur the same in the studies on the Food Industry (FI), in which it is used to consider that this is a sector whose location is guided basically toward the raw inputs. 1 In this paper we determine the present and past location of the different subsectors within the Food, Beverages and Tobacco (FBT) sector, in order to know if the standard location pattern have been modified throughout the last years ( ). In the second place, we will try to verify if the agrarian production constitutes a relevant attraction factor for the FBT firms or, on the contrary, the factors that guide its location can be similar to those of the other industrial sectors. There is an important limitation to carry out the study: the availability of data. Since the sector FBT is very heterogeneous, to obtain reasonably safe conclusions is necessary to descend to a detailed analysis and to a geographical area not bigger than a province. However, the statistical information available with that desegregation level and for that area is certainly reduced. In fact, the only variable to indicate the location is the employment, and we have data from the Industrial Census of 1978 and from the Industrial Survey of Unfortunately, in 1993 there has been a methodology change in the Industrial Survey, with some activities being regrouped (see Table 1 in the appendix), hence a very valuable information is lost by joining activities whose location patterns were clearly different in Other problem, though this one less important, is that the subsector "Pasta and starchy products" has disappeared in 1993, and this activity has been divided in pastas included in the subsector "Miscellaneous edible products" and "starchy products" has been included in "Milled cereals. With both modifications there is no exact correspondence between the "Miscellaneous edible products" of 1978 and 1993, and the same is true for Milled cereals. This proceed does not alter in practice the results of the analysis, upon having the lost 2

3 subsector a marginal importance within the FBT (in 1978 only represented a 0,8% of the employment of the total sector). On the other hand, the Instituto Nacional de Estadística (INE), the official Spanish statistical office, to observe the legal statistical secret, has not facilitated information on some subsectors for given provinces due to the small number of firms involved. Nevertheless, the degree of coverage of the available data, except for the subsector of "Tobacco", is quite high (see Table 1 in appendix). 2. THE GEOGRAPHICAL LOCATION OF FOOD INDUSTRY IN SPAIN. The objective of this section is to know the present and past geographical distribution of the FI in Spain. In Table 2 we have collected some variables that can serve for this purpose. In order not to surcharge it unnecessarily of information, the table only reflects, for each one of the subsectors, the concentration Index of Gini (IG), the provinces with greater Specialization Index 3 and those with the greater percentage of employment. As can be observed in the table, the degree of territorial concentration of the FI is less than the industrial average, though the differences among subsectors are very pronounced. Thus the subsectors of "Cider", "Vegetable Preserves", "Fish Preserves", "Pastas and products from starch", and "Tobacco", appear as the most concentrated, much more that the industrial average. On the contrary, the most geographically scattered subsectors are "Milled cereals, Cereal preparations", "Meat and meat preparations", "Feeding stuff for animals" and "Dairy products", all of them with an IG smaller than the industrial average. Concerning the specialization rate, in the first place it should be indicated that this is not guarantee of location, since there are provinces that have a high specialization rate in some subsector and, however, they hoard a percentage of employment very reduced. In the second place, if we compare the evolution of the specialization rate of each province in 1978 and in 1993 it is observed that there is a certain degree of inertia. This inertia could be related to the existence of comparative advantages linked to some variable as, for example, the raw inputs, although this point should be analyzed in more detail. Therefore, as referred to the location of the FI considered as a whole, since the last fifteen years, Andalucia and Cataluña concentrate about one third of the sectorial employment. If we add the Comunidad Valenciana and Castilla y León, the percentage increases to somewhat more than 50%. 3

4 Within each one of those regions, the employment is concentrated in one or two provinces: Barcelona hoards more than half of the employment of Catalonia, and the same is true for Valencia within its region and Sevilla and Cádiz within Andalucia. In Castilla y León the employment is a little more spatially distributed. For the subsectors, the production of "Oils and margarine" were concentrated, in 1978, in three Andalusian provinces: Jaén, Córdoba and Sevilla (45%) 4 and in Tarragona (5,6%). In 1993, though the three Andalusian provinces continue absorbing a similar percentage of employment, it seems to be a shy spatial reorientation of the transformation factories towards Catalonia and Madrid and away from Andalusia, that loses two percentage points in the subsectorial employment, while Madrid earns somewhat more than two points and Catalonia increases its participation in almost nine points. Within this region, Barcelona is the main target of that reallocation, because from an absorption of 1.7% of the employment in 1978 goes to a 11.4% in The subsector "Meat and meat preparations" was and is concentrated, in connection with the large population kernels, in Barcelona, Madrid and Valencia, and in their proximity, Gerona, Lérida (of Barcelona), Toledo (of Madrid) and in the provinces of Burgos, Navarra and Murcia. The production of "Feeding stuff for animals" has not changed significantly its location either: the Northeast (Barcelona, Lérida, Tarragona, Zaragoza, Murcia), Seville, La Coruña and Madrid are the principal site points. The "Dairy products" were distributed basically among the consumption zones (Madrid, Barcelona, Valencia and Seville) and those of input production (Asturias, Cantabria, Pontevedra). In 1993 the situation has been slightly modified, with Burgos and Las Palmas increasing significantly their participation in the subsectorial employment, and also Barcelona, though more modestly, and Cantabria, Pontevedra and Madrid reducing their relative importance. Preserves were and are located in the same sites. Vegetable preserves in Murcia (30%), Seville, Navarra, Valencia and La Rioja, and Fish preserves in Pontevedra, La Coruña and Cantabria. "Milled cereals" was in 1978 quite homogeneously distributed all over the national territory, but the picture in 1993 is quite different, showing a strong process of territorial concentration (Barcelona, Tarragona and Seville have changed from absorbing 10% of the 4

5 employment in 1978 to the 30% in 1993) and is detected a relative reallocation mainly in favour of Barcelona and Tarragona. "Miscellaneous edible products", "Cereal preparations and " Non-alcoholic beverages" are located basically in connection with the population agglomerations: Madrid, Barcelona, Valencia, Seville. The factories producing sugar were located in 1978 in five Andalusian provinces: Granada, Jaén, Málaga, Seville and Cádiz, and in three castillian: Valladolid, León and Palencia. 52% of the employment of the subsector of "Cocoa, chocolate and confectionery products" were concentrated in Alicante, Barcelona, Guipúzcoa, Madrid and Seville. The union of these two subsectors in 1993 prevents to know if it has been modified the site of each one of them, but the fact that the provinces before mentioned appear with a percentage of employment increased in 1993 support the idea that the location has not been substantially modified. Within the subsector "Alcoholic Beverages" one must differentiate among the activities that compose it. The production of "Wine" was concentrated, in 1978, in Cádiz, Barcelona, La Rioja and Ciudad Real. The "Cider" was completely located in Asturias and Guipúzcoa and the factories of "Beer" in connection with the large cities: Madrid, Seville, Barcelona and Valencia. The aggregation of subsectors that the Industrial Survey of 1993 carries out prevents to know if there has been a reallocation of these activities, but the fact that the mentioned provinces still hoard an important percentage of the employment of the resulting conglomerate let us think that the situation should not be significantly different. With respect to the "Cider", according to data of the Agriculture, Fishing and Food Ministry for 1991/92 5, Asturias, that was concentrating 81% of the employment in 1978, was absorbing only 52% in those dates, while Guipúzcoa had increased in ten points its participation in the employment, and Navarra and Lérida in twenty-one points, and with these data we can speak of a spatial reorientation of this activity towards the East. Finally, the subsector of "Tobacco" were located in 1978 in The Canary Islands, Cádiz, Cantabria and Tarragona. In 1993 the statistical secret affects to this subsector, as already said, in a very substantial way, therefore we can not assure that it continues to be located in the same zones as in 1978, but with the available data we can assert that, though the Canary Islands have lost relative weight within the subsector, still continue to concentrate somewhat more than one fourth of the employment. 5

6 3.- THE RAW INPUTS AS LOCATION FACTOR OF FOOD INDUSTRY. After describing the distribution of the FI across the Spanish territory in this section we try to clarify if that localization is determined by the inputs. For this purpose, in the first place, we test if the provincial specialization in the sector is supported on a corresponding agrarian specialization and, in the second place, we analyze the degree of existing correlation between the provincial series of agrarian employment and employment in the FBT sector. From the twenty-six provinces that in 1978 had a sectorial specialization index higher than one, twenty were counting also with an agrarian specialization index superior to the national average; of the six remaining, four (Madrid, Tarragona, Valladolid and Gerona) had a specialization index high, but an agrarian specialization index small. Even if between the specialization in the FBT sector and in the agrarian sector seems to be a high degree of correlation, it does not occur the same between the provincial series of agrarian and FBT employment. The determination coefficient obtained upon accomplishing the regression analysis results barely meaningful, and the differences between both series of employment are outstanding. Thus, for example, in 1978 Madrid, Barcelona and Valencia concentrated 22.4% of the employment in FBT, but only 6.4% of the agrarian employment. 6 On the contrary, La Coruña, Lugo and Pontevedra were concentrating 16% of the agrarian employment, but only a 6.7% of the employment in FBT. 7 Therefore, if the analysis of the specialization seems to indicate that in fact the FBT sector is guided basically toward the raw inputs, the low correlation between the series of agrarian employment and FBT contradicts that first impression. These results, joined to the already indicated fact that the FBT sector is very heterogeneous with respect to the productions as well as to the productive structure, let us reach the conclusion that in order to confirm or reject the hypothesis on the direction of the sector toward the raw input, it is unavoidable to descend to the subsectorial analysis. We have tried to verify if each one of the subsectors that compose the FBT is located where its main input is produced. More precisely, we try to establish the degree of correlation between the provincial production of input, measure in percent respect to the national total, and the provincial FBT employment, measured also in percentages. The task, apparently simple, is complicated by the statistical limitations already exposed and by the fact that for some subsectors it is not clear how to establish a correlation 6

7 between the raw input and the corresponding transforming subsector, well because the subsector needs a great variety of inputs, well because the main inputs are imported or because the principal input can be found all along the national territory. For instance, to the first case belong Miscellaneous edible products and "Vegetable preserves"; while "Cocoa, chocolate and confectionery products" participates of the first and second class, and in the third group can be included "Non-alcoholic Beverages". For some of those subsectors, however, we think it is more appropriate to study their links to the principal raw inputs they use rather than to let them out of the analysis. This is the case, for example, of the subsectors Milled cereals and Feeding stuff for animals. On the other hand, the new methodology used by the INE to process the Industrial Survey of 1993, hinders us from carrying out an analysis as itemized as the one accomplished for Nevertheless, the corresponding data to 1993 will permit us to see if the correlations detected in 1978 for the large subsectors result confirmed or if they have changed. In short, the subsectors in which we analyze the degree of correlation between the corresponding industrial employment and the raw input production are the following (in brackets the input or inputs): "Oils and margarine", we will differentiate between Olive oil" and "Other oils and margarine" (olives for transformation, soybean and sunflower), Meat and meat preparations (bovine and porcine), Dairy products (cow and sheep milk), Milled cereals (wheat and barley), Pastas and starchy products (wheat), Cereal preparations (wheat), "Sugar" (sugar beet), "Feeding stuff for animals" (barley and soybean), "Alcohols" and "Wine" (grape for transformation), "Cider" (apple for cider), "Beer" (barley), "Tobacco" (dry tobacco). For "Vegetable preserves", "Fish preserves", "Cocoa, chocolate and confectionery products", "Miscellaneous edible products" and "Non-alcoholic beverages", though it has not been possible to establish a correspondence with the inputs as specific as in the previous cases, some considerations will be made. In 1978, only in four subsectors the raw input seems to be a fundamental factor in their location: "Olive oil", Cider, "Fish Preserves" and "Vegetable Preserves". For the first two subsectors it has been possible to calculate the coefficient of determination, being obtained values of 0.86 for "Olive oil" and 0.84 for "Cider. Concerning the factories of "Fish Preserves", are located largely along the coast, 8 therefore, though we have not been able to 7

8 calculate the coefficient of determination, 9 it does not seem very risky to venture a direction also toward the raw input. In the subsector of "Vegetable Preserves", the employment is concentrated in provinces in which the vegetable production is important. In the rest of the subsectors ("Other oils and margarine", "Meat and meat preparations", Dairy products, Milled cereals, "Cereal preparations", "Feeding stuff for animals", "Pastas and starchy products", "Sugar", "Alcohol", "Wine", "Beer" and "Tobacco") the connection between input production zones and product elaboration zones is so weak that, in principle, we conclude that the raw input can not be considered as a decisive attraction element for allocation. In some cases we could even completely discard the influence of the primary production, as, for example, in "Tobacco". In fact, Cáceres and Granada concentrated in 1978 the 88% of the dry tobacco production, while only gave employment in the transforming activity to the 3.4% of the national total. On the contrary, Tenerife, Las Palmas, Cádiz and Cantabria concentrated 51% of the employment in the transforming subsector, but hardly produced 0.3% of the input. The results obtained for some of the subsectors, nevertheless, should be taken with caution, taking into account the diversity and origin of their inputs. This is the case of "Feeding stuff for animals" and "Milled cereals. As is known, the "Feeding stuff for animals" is a mixture of different matters (barley, soybean, sorghum, corn) and of residues (molasses, beet flesh). This variety of inputs, with the fact that an important part of them are imported, compels us to take the results of the regression analysis with certain caution. These results, upon considering the two principal inputs of the production (soybean and barley), do not seem to point to a direction in favour of the inputs, but one must bear in mind that Barcelona, Tarragona, Murcia or La Coruña, the main sites of production are also important ports where the imported inputs enter, therefore reinforcing the influence of this locational factor. For the subsector Milled cereals we have considered only two of several possible inputs, but the obtained R 2 is too low to indicate, in principle, that the raw input is a relevant factor in the location. For "Cocoa, chocolate and confectionery products", "Miscellaneous edible products" and "Non-alcoholic beverages", the reasons mentioned above hinders us from performing the regression analysis, but these activities, as already seen, are concentrated in the large population kernels. 8

9 As a provisional conclusion, according to the results obtained for 1978, very few of the subsectors seem to have a location linked in a significant way to the places where their main raw inputs are produced. Nevertheless, in the previous analysis the geographical reference was the province, and we think that it still could be accepted the hypothesis of direction toward the raw input if the manufacturing industry, instead of being located in the same province of the primary production, it is localized in its proximity, for example, in the nearby areas of greater industrial density. Therefore, it is illustrative to repeat the analysis, but now considering the region as the geographical unit. 10 Upon studying the degree of correlation between the corresponding regional series, the coefficient of determination is increased, as were expected, in nearly all cases and the raw input turns out to be a relevant locational factor, in addition to "Olive oil" and "Cider, 11 now also in "Other oils and margarine", "Meat and meat preparations", "Sugar" and, with more reserves, in "Milled cereals. In "Meat and meat preparations" the R 2 obtained with respect to the location of the bovine census continues to be very low (0.15), therefore it can be discarded its direction toward this input, but it is not the case with respect to the porcine, whose R 2 is In the case of "Sugar" it was indicated in the provincial analysis that the input was scarcely relevant as a determinant factor of situation. However, when we consider the regional level the relation is increased considerably, and that seems to indicate that the sugar-bowl factories are located in the beet production zones and in their proximity, hence the raw input is an important variable in the allocation decision of the factories. The relation obtained for the subsector "Milled cereals with wheat production (0.65) as well as with barley (0.52) is not high enough to accept that the raw inputs are a decisive factor of allocation, though we believe that their influence is non negligible. With respect to "Fish Preserves" and "Vegetable Preserves", the regional analysis confirms the results obtained at the provincial level. It is confirmed also the practically void influence of the raw input in determining the situation of "Pastas and starchy products", Alcohols", "Beer" and "Tobacco. For the other subsectors ( Dairy products, "Cereal preparations, "Feeding stuff for animals", "Wine") the R 2 is so low that it can not be accepted that the raw input is the fundamental variable that guides their location. 9

10 Respect to the "Wine", nevertheless what is said, we need to make some remarks. The R 2 obtained for this activity is low, in the provincial analysis as well as in the regional one, so that it could be disregarded the influence of the raw input. This result, however, seems to be in contradiction with the casual observation, probably due to the difference between the productive potential of inputs of some provinces and the importance of their transforming industry. This is the case, for example, of Cádiz, Barcelona or La Rioja, whose local grape supply is insufficient to attend the needs of a potent industry that elaborates products of quality and internationally recognized prestige. Other provinces, as Ciudad Real, although with an important wine industry, produce more input that they can transform. Once analyzed the same information for 1993, we can confirm the direction toward the raw inputs of "Oils and margarine", "Vegetable Preserves", "Fish Preserves" and "Meat and meat preparations" (respect to the porcine). As indicated in section 2 upon analyzing the spatial distribution of the different subsectors, "Oils and margarine" seems to have been through a modest reallocation in favour of Barcelona and Madrid and away from Andalucia. In "Fish Preserves" we can not speak of reallocation, since the three provinces that were absorbing the greater part of the employment in 1978, not only maintain it in 1993 but even increase that participation, and also increase their participation Madrid (from 2.1% to 5.3%) and Barcelona (from 0.5% to 3.6%). Both facts can not carry us to assert, in a categorical way, that the modest reorientation of these activities is motivated by different factors to the raw input, since Barcelona is an important fishing zone and the production of inputs (especially soybean) for the oil subsector has increased very much in Catalonia from However, the presence of Madrid in both cases, that evidently it is not a fishing port and was not, neither it is, a zone producing inputs for the oil subsector, make us to suspect the existence of other factors (agglomeration economies, proximity to the markets) acting, together with the raw input, in favour of the attraction of these activities, though that attraction will be still very weak. The result obtained for Milled cereals in 1978 was carrying us to propose a certain influence of the raw input in the location decisions of this activity. In 1993 the obtained coefficient has decreased sensibly, so that it can be disregarded the influence of that variable. The reallocation of this activity in favour of Catalonia, and of Barcelona in particular, has the same explanations as in the previous cases of "Oils and margarine" and "Fish Preserves. 10

11 With respect to "Alcohols", "Cider, "Wine" and "Beer" nothing can be said for 1993, since all of them appear grouped in a unique sector, "Alcoholic Beverages". The same is true with the subsector "Sugar" whose data appear together with those of "Cocoa, chocolate and confectionery products. Nevertheless, as already indicated, it seems that between 1978 and 1993 there has not been a meaningful spatial reorientation of these activities, except for "Cider" and, therefore, we can think that the factors that guided their location have not been modified substantially between both dates. The statistical secret to which are submitted the provincial data facilitated by the INE, prevent us to assure if in the subsector of "Tobacco" the input continues to have no influence on the location of the transformation sector, but the fact that somewhat more than one fifth of the subsectorial employment continues to be in the Canary Islands, and that they do not produce the basic product, persuade us of the influence of the raw input continues being negligible. In the rest of the subsectors ( Dairy products, "Feeding stuff for animals", "Cereal preparations") just as was occurring in 1978 the inputs do not seem to be the factor that determine their location. Finally, the same conclusions obtained for 1978 on Miscellaneous edible products and "Non-alcoholic beverages" continue to be valid for Already seen that the raw input appears as a powerful factor of allocation for only few activities, other variables should be explored, but that is something beyond the scope of this work, and that will be the goal of further analysis. Nevertheless, we do not want to finish without noting some possible explanatory elements, though it must be understood that the purpose is to list some factors, at a very exploratory level, and that a deeper analysis is required in order to establish robust conclusions. According to various authors "there exists an intrinsic force in the location decision process that systematically gives priority to the greater industrial density zones" (Aurioles and Cuadrado, 1989). If that is true, the FBT will tend to be located in the same places as the rest of the industrial sectors and hence the factors that guide that location will be the same. We have calculated the coefficients of determination, first between employment in FBT and the industrial employment and then between employment in each of the subsectors 11

12 and the industrial employment, for the provincial level and the results obtained, very synthetically, are the following: 1. The coefficient of determination between the FBT and industrial employment is quite high (0.73), what seems to indicate that, as a rule, the industrial density plays a decisive role in the geographical location of the FBT. These results agree with those obtained by Terrasi (1985) for Italy. In those results the two factors that have played an unquestionable role in the location of the Italian FBT are the raw input and the industrial agglomeration economies, while demand does not seem to exercise great influence. 2.- The subsectors "Oils and margarine", "Vegetable Preserves", "Fish Preserves", "Milled cereals", Sugar, "Feeding stuff for animals", "Alcohols", "Wine", "Cider" and "Tobacco" present a low correlation with the location of the rest of Industry in In 1993 occurs the same with the first three. In Milled cereals and "Feeding stuff for animals" though the R 2 still is hardly significant, it has increased. For the rest of the activities nothing can be said for the limitations imposed by the statistics. 3.- The subsectors Dairy products, "Pastas and starchy products", "Cereal preparations", "Miscellaneous edible products" and "Non-alcoholic Beverages" seem to be concentrated in zones with high industrial base. 4. FINAL CONSIDERATIONS In order to conclude we gather the most relevant aspects deduced from the preceding analysis. In the first place, it should be note that, although the FBT is a sector less concentrated than the industrial set, four regions absorb the greatest part of the sectoral employment: Catalonia, Andalucia, Madrid and Castilla y León. The location of the different subsectors has not been modified substantially in the last years, only a moderate territorial reorientation in some of them in favour, above all, of Catalonia (and of Barcelona in particular). This can be interpreted as the result of a process in which certain forces are acting in favour of the approximation to the large population or industrial agglomerations, but at the same time there are also important factors (fixed investments, denominations of origin, historical tradition) stopping that process of reallocation. 12

13 Finally, in few subsectors the raw input constitutes a relevant factor of allocation, and between 1978 and 1993 the influence of this variable even seems to decrease. ACKNOWLEDGMENT Financial support by the Comision Interministerial de Ciencia y Tecnologia (project SEC95/322) is thankfully acknowledged. FOOTNOTES 1 Few studies have analysed the determinants of the FBT allocation and, in general terms, they treat this question at a very descriptive and superficial level. These studies have focused on the issue of determining if the situation of the FBT industry is related to the production sites of the raw inputs or to the consumption sites, for instance Rodriguez-Zúñiga and Soria (1985). For some subsectors García Grande (1991) and for some areas Sanz Cañada (1987). 2 The Industrial Survey as well as the Industrial Census are elaborated by the INE. The data from the Census is published, but data from the Survey have been facilitated by the INE. 3 The Specialization Index has been calculated as IE=(E ij /E it )/(E ie /E te ), where "E" is for employment, "i" is the subsector, "j" is the province, "e" is Spain and "t" means total employment. 4 According to the Industrial Census of 1978, Caceres absorved 21.5% of national employment in Olive oil. This figure is far too huge as compared to data corresponding to the region (Extremadura) in the Industrial Survey of the same year. So we have proceeded to correct it using the figure of the Survey for Extremadura, and then diminishing it with the corresponding figure of Badajoz (the other province of Extremadura) from the Census. 5 MAPA:Boletín Mensual de Estadística Agraria, nº 3-4, Agrarian Employment data are taken from Banco de Bilbao: Renta nacional de España y su distribución provincial, 1977 and 1979, and are the average of those years. 7 For 1993 we can not complete the same analysis because the INE did not give us provincial data on employment for the whole FBT sector. 13

14 8 Although surprising, Madrid had 2% of the employment in this subsector. 9 Data on fish by ports are not available. 10 We are aware that this procedure is imperfect for our purpose, as is not always the case that the administrative areas are the same as the economically homogeneous areas, but this decision simplifies and makes it possible to carry out the analysis. 11 Surprisingly, the R 2 for Cider is higher (0.84) at the provincial than at the regional level (0.77). 12 These results agree with those obtained in a previous research by García Grande (1991), where the location of Meat (not included meat preparations) was analyzed. According to that research the localization was oriented toward the consumption areas and not to the production areas. REFERENCES Aurioles, J. and J.R. Cuadrado (1989) La localización industrial en España. Factores y tendencias, en Fundación FIES Factores explicativos de las decisiones de localización. Callejón, M. and M.T. Costa (1996) Economías externas y localización de las actividades industriales, próxima publicación en Economía Industrial. García Grande, M.J. (1991) El sector bovino en Castilla y León y su integración en los circuitos comerciales. Consideración especial sobre la localización de la actividad transformadora, Junta de Castilla y León, Valladolid. Rodríguez-Zúñiga, M. and R. Soria (1985) Caracterización de la industria agroalimentaria, Pensamiento Iberoamericano 8, pp Sanz Cañada, J. (1987) Caracterización estructural de la industria agroalimentaria de primera transformación en áreas urbano-industriales: el caso de la Comunidad de Madrid, Revista de Estudios Agrosociales 141, pp Terrasi, M. (1985) I fattori di localizzazione dell industria alimentare in Italia, Revista di Economia Agraria 1, pp

15 APPENDIX Table 1. Subsectors used and their correspondence 1978 Industrial Census 1993 Industrial Survey coverage* Olive oil Oils and margarine 87,2% Other oils and margarine Meat and meat preparations Meat and meat preparations 98,1% Dairy products Dairy products 91,0% Vegetable preserves Vegetable preserves 95,3% Fish preserves Fish preserves 92,3% Milled cereals Milled cereals ** 87,9% Cereal preparations Cereal preparations 98,0% Sugar Sugar, cocoa, chocolate and Cocoa, chocolate and confectionery products confectionery products 89,3% Feeding stuff for animals Feeding stuff for animals 85,4% Miscellaneous edible products Miscellaneous edible products 87,9% Pastas and starchy products Alcohol Alcoholic beverages 96,1% Wine Cider Beer Non-alcoholic beverages Non-alcoholic beverages 67,1% Tobacco Tobacco 21,2% Notes: * Coverage means the percentage of the national employment covered with the provincial data received from the INE and based on the Industrial Survey of 1993 (refer to text). ** See introduction. 15

16 percentage of employment specialization index percentage of employment Table 2.a. Location variables in 1978 specialization index percentage of employment specialization index percentage of employment specialization index Oils and margarine (IG=0,87) Milled cereals (IG=0,47) Feeding stuff for animals (IG=0,67) Beer (IG=0,86) JAEN 28,40 JAEN 19,87 CACERES 6,75 CACERES 6,82 BARCELONA 8,89 LERIDA 8,17 MADRID 23,73 LERIDA 4,87 CORDOBA 8,14 CORDOBA 5,23 VALENCIA 4,74 HUESCA 4,14 LERIDA 8,67 BURGOS 3,91 SEVILLA 11,64 SEVILLA 4,10 SEVILLA 7,93 CACERES 3,89 SEVILLA 4,12 SORIA 3,66 ZARAGOZA 7,77 TARRAGONA 3,38 BARCELONA 11,04 MADRID 1,93 TARRAGONA 5,65 TARRAGONA 3,89 LERIDA 3,50 ZAMORA 3,59 TARRAGONA 4,92 ZARAGOZA 3,33 VALENCIA 8,18 MALAGA 1,89 MALAGA 4,25 SEVILLA 2,79 BADAJOZ 3,49 SEGOVIA 3,59 LA CORUÑA 4,45 VALLADOLID 2,95 LERIDA 5,17 BURGOS 1,70 CACERES 3,85 TERUEL 2,44 TARRAGONA 3,35 AVILA 3,53 SEVILLA 4,09 SEGOVIA 2,73 MALAGA 4,00 GRANADA 1,46 VIZCAYA 3,60 BADAJOZ 2,14 LUGO 3,09 GUADALAJARA 3,38 BURGOS 3,82 NAVARRA 2,50 MURCIA 3,36 CORDOBA 1,44 Total 65,27 Total 32,00 Total 46,37 Total 70,14 Meat and meat preparations (IG=0,66) Pastas and starchy products (IG=0,93) Miscellaneous edible products (IG=0,79) Non-alcoholic beverages (IG=0,75) BARCELONA 10,96 SORIA 9,29 BARCELONA 45,15 GUADALAJARA 8,29 BARCELONA 19,29 CANTABRIA 4,56 MADRID 15,35 ALAVA 6,68 GERONA 8,44 GERONA 5,34 ZARAGOZA 9,99 ZARAGOZA 4,28 MADRID 19,16 VALLADOLID 4,05 BARCELONA 14,16 LAS PALMAS 2,40 MADRID 6,61 BURGOS 4,47 VALENCIA 7,50 VALLADOLID 3,86 CANTABRIA 6,72 SORIA 3,40 VALENCIA 6,13 GERONA 2,30 VALENCIA 6,58 SEGOVIA 4,33 MADRID 5,29 BARCELONA 3,50 MURCIA 5,43 SEGOVIA 2,84 ALAVA 5,14 BALEARES 1,82 LERIDA 4,45 LERIDA 4,20 VALLADOLID 4,39 TARRAGONA 3,00 VALLADOLID 4,60 BURGOS 2,27 ALICANTE 4,04 MALAGA 1,72 BURGOS 4,37 SALAMANCA 2,82 TARRAGONA 4,36 LAS PALMAS 2,61 VALENCIA 4,07 MURCIA 2,22 LAS PALMAS 3,99 SEVILLA 1,39 NAVARRA 3,39 NAVARRA 2,45 LAS PALMAS 4,32 CIUDAD REAL 2,07 GERONA 3,44 GERONA 2,18 SEVILLA 3,94 ALICANTE 1,28 Total 47,61 Total 84,16 Total 65,93 Total 56,40 Dairy products (IG=0,73) Cereal preparations (IG=0,59) Alcohols (IG=0,75) Tobacco (IG=0,90) MADRID 13,88 JAEN 2,79 BARCELONA 12,06 PALENCIA 3,98 CADIZ 15,60 CADIZ 7,88 TENERIFE 26,48 TENERIFE 15,20 BARCELONA 12,29 PALENCIA 2,74 MADRID 8,72 BURGOS 1,68 BARCELONA 14,72 SEGOVIA 5,44 LAS PALMAS 9,63 LAS PALMAS 5,80 ASTURIAS 8,16 ASTURIAS 2,45 VALENCIA 5,94 ZAMORA 1,58 MURCIA 8,01 CIUDAD REAL 4,11 CADIZ 8,42 LA RIOJA 5,39 VALENCIA 7,00 CANTABRIA 2,42 ALICANTE 4,03 CIUDAD REAL 1,56 CIUDAD REAL 4,76 MURCIA 3,27 CANTABRIA 6,43 CANTABRIA 4,36 JAEN 4,00 LERIDA 2,15 SEVILLA 3,93 CUENCA 1,54 MALAGA 3,95 CUENCA 3,03 TARRAGONA 5,70 CADIZ 4,25 CANTABRIA 3,56 LUGO 1,66 VIZCAYA 2,93 BADAJOZ 1,50 MADRID 2,77 ALBACETE 2,56 SEVILLA 5,59 TARRAGONA 3,92 PONTEVERA 3,29 VALLADOLID 1,61 MURCIA 2,88 CORDOBA 1,47 BALEARES 2,64 TOLEDO 2,09 ALICANTE 5,42 SEVILLA 1,97 Total 55,00 Total 42,87 Total 55,07 Total 72,76 Vegetable preserves (IG=0,93) Sugar (IG=0,88) Wine (IG=0,83) Food, Beverages and Tobacco (IG=0,58) MURCIA 29,12 NAVARRA 12,94 GRANADA 14,06 VALLADOLID 12,17 CADIZ 19,80 LA RIOJA 12,70 BARCELONA 9,49 LA RIOJA 2,36 SEVILLA 19,18 MURCIA 11,89 VALLADOLID 13,84 PALENCIA 11,94 BARCELONA 13,02 CADIZ 10,00 MADRID 7,31 NAVARRA 2,16 NAVARRA 17,90 SEVILLA 6,75 MALAGA 8,82 GRANADA 8,54 LA RIOJA 9,65 CIUDAD REAL 6,10 VALENCIA 5,58 SORIA 2,03 VALENCIA 10,11 LA RIOJA 5,79 LEON 7,80 ZAMORA 6,23 CIUDAD REAL 7,07 CUENCA 4,38 SEVILLA 4,81 PALENCIA 1,87 LA RIOJA 4,40 CACERES 2,73 JAEN 7,48 JAEN 5,23 TOLEDO 5,28 TOLEDO 4,20 MURCIA 4,44 MURCIA 1,82 BADAJOZ 2,86 BADAJOZ 1,92 SEVILLA 5,91 BURGOS 4,73 VALENCIA 4,36 HUELVA 3,09 CADIZ 3,17 JAEN 1,82 CACERES 2,70 VALENCIA 1,77 CADIZ 5,91 LEON 4,67 BADAJOZ 3,86 ALBACETE 3,04 PONTEVERA 3,01 LERIDA 1,79 Total 88,60 Total 69,18 Total 66,81 Total 40,79 Fish preserves (IG=0,92) Cocoa, chocolate and confectionery (IG=0,83) Cider (IG=0,99) Total Industry (IG=0,75) PONTEVERA 31,40 PONTEVEDRA 10,25 ALICANTE 16,53 ALICANTE 5,23 ASTURIAS 80,94 ASTURIAS 24,28 BARCELONA 21,25 ALAVA 2,18 LA CORUÑA 14,94 CANTABRIA 7,56 BARCELONA 13,87 GUIPUZCOA 4,80 GUIPUZCOA 15,93 GUIPUZCOA 7,98 MADRID 11,29 GUIPUZCOA 1,98 CANTABRIA 11,14 LAS PALMAS 5,28 GUIPUZCOA 9,58 TOLEDO 3,88 NAVARRA 0,71 HUESCA 0,93 VALENCIA 6,50 VIZCAYA 1,70 LAS PALMAS 8,76 LA CORUÑA 4,85 MADRID 6,72 PALENCIA 2,50 VIZCAYA 0,57 NAVARRA 0,51 VIZCAYA 5,64 BARCELONA 1,65 CADIZ 6,99 CADIZ 3,53 SEVILLA 5,59 LA RIOJA 2,22 HUESCA 0,57 LERIDA 0,27 ASTURIAS 3,95 NAVARRA 1,63 VIZCAYA 6,52 HUELVA 2,23 TOLEDO 4,88 VALLADOLID 2,01 VALENCIA 0,57 ZARAGOZA 0,18 GUIPUZCOA 3,95 VALLADOLID 1,45 GUIPUZCOA 2,93 VIZCAYA 1,96 VALENCIA 4,38 SEVILLA 1,97 ZARAGOZA 0,43 VIZCAYA 0,17 ALICANTE 3,86 LA RIOJA 1,36 Total 84,83 Total 65,48 Total 100,00 Total 59,20 16

17 percentage of employment specialization index percentage of employment Table 2.b. Location variables in 1993 specialization index percentage of employment specialization index Provinces with Provinces with higher percentage of higher specialization employment index Oils and margarine (IG=0,76) Fish preserves (IG=0,85) Feeding stuff for animals (IG=0,59) Tobacco CORDOBA 18,60 JAEN 13,51 PONTEVEDRA 33,49PONTEVEDRA 12,90 BARCELONA 8,99 LERIDA 8,65 TENERIFE 15,83 TENERIFE 8,92 JAEN 17,58 CORDOBA 11,81 CORUÑA 18,03CANTABRIA 6,72 LERIDA 8,89 SEGOVIA 4,97 LAS 5,42 LAS 3,00 PALMAS PALMAS BARCELONA 11,44 LERIDA 4,24 CANTABRIA 9,11CORUÑA 6,21 MADRID 7,01 BURGOS 3,74 SEVILLA 8,35 TERUEL 3,17 MADRID 5,32HUELVA 2,85 MURCIA 5,04 HUESCA 3,29 LERIDA 4,35 GRANADA 2,58 VIZCAYA 4,55VIZCAYA 1,52 CORUÑA 4,63 LUGO 2,94 GRANADA 4,18 SEVILLA 2,55 BARCELONA 3,61CADIZ 1,47 ZARAGOZA 4,43 SALAMANCA 2,89 VALECIA 3,86 BADAJOZ 2,27 CADIZ 2,93LUGO 1,41 VALENCIA 3,99 NAVARRA 2,59 Total 71,71 Total 79,90 Total 46,78 Meat and meat preparations (IG=0,66) Milled cereals (IG=0,64) Miscellaneous edible products (IG=0,75) BARCELONA 12,21 SORIA 7,54 BARCELONA 11,88TARRAGONA 7,44 BARCELONA 37,91 VALLADOLID 3,81 GERONA 9,77 LERIDA 6,69 TARRAGONA 11,22CUENCA 5,13 MADRID 9,07 CANTABRIA 3,75 LERIDA 6,87 GERONA 5,96 SEVILLA 7,24ZAMORA 4,59 CANTABRIA 5,08 BARCELONA 2,88 MADRID 6,23 TERUEL 4,24 ZARAGOZA 5,68HUESCA 3,43 VALLADOLID 4,90 TARRAGONA 1,61 MURCIA 4,67 BURGOS 4,03 VALENCIA 3,99LERIDA 3,32 VALENCIA 4,20 LA RIOJA 1,38 VALENCIA 4,66 SEGOVIA 3,55 MADRID 3,72VALLADOLID 2,44 ASTURIAS 3,75 ASTURIAS 1,37 BURGOS 3,83 SALAMANCA 2,44 GRANADA 3,69ZARAGOZA 2,41 TARRAGONA 2,43 CACERES 1,23 Total 51,29 Total 50,84 Total 69,31 Dairy products (IG=0,71) Cereal preparations (IG=0,66) Alcoholic beverages (IG=0,76) BARCELONA 15,02 BURGOS 6,07 BARCELONA 11,63PALENCIA 2,88 BARCELONA 14,23 LA RIOJA 9,59 MADRID 10,08 ZAMORA 3,83 MADRID 28 10,34SORIA 2,59 CADIZ 11 11,58 CADIZ 5,80 ASTURIAS 7,39 ASTURIAS 2,71 VALENCIA 8,88ALAVA 2,25 MADRID 28 8,16 CIUDAD REAL 4,05 VALENCIA 6,85 LAS PALMAS 2,63 SEVILLA 41 6,28SEVILLA 1,92 LA RIOJA 26 6,89 CUENCA 3,67 BURGOS 5,77 GRANADA 2,32 MURCIA 30 3,16CORDOBA 1,81 VALENCIA 6,01 ALAVA 2,88 LAS PALMAS 4,76 ALBACETE 1,98 CORUÑA 15 2,95VALECIA 1,60 CIUDAD RE 13 4,90 NAVARRA 2,78 SEVILLA 4,59 LUGO 1,86 ASTURIAS 33 2,94GERONA 1,36 SEVILLA 41 4,47 ALBACETE 2,57 Total 58,23 Total 49,03 Total 60,29 Vegetable preserves (IG=0,86) Sugar, cocoa, chocolate and confection. Non-alcoholic beverages (IG=0,67) MURCIA 29,66 MURCIA 11,51 BARCELONA 13,87VALLADOLID 4,80 BARCELONA 11,08 LAS PALMAS 4,31 NAVARRA 14,76 NAVARRA 10,16 ALICANTE 3 11,19ZAMORA 3,84 MADRID 28 10,79 GERONA 3,04 SEVILLA 10,40 LA RIOJA 7,94 VALLADOLID 6,17ALICANTE 3,35 LAS PALMAS 7,80 CUENCA 2, VALENCIA 5,92 SEVILLA 3,18 MADRID 28 5,97JAEN 2,65 VALENCIA 5,66 BALEARES 1,64 LA RIOJA 5,71 CACERES 3,12 MURCIA 30 4,89TOLEDO 2,27 GERONA 17 4,99 CORUÑA 1,63 BADAJOZ 4,05 BADAJOZ 2,83 ZARAGOZA 50 4,01LEON 2,03 CORUÑA 15 4,73 MALAGA 1,37 CACERES 3,07 BURGOS 2,16 CADIZ 11 3,90CORDOBA 2,02 MALAGA 29 3,42 VALECIA 1,02 Total 76,25 Total 53,45 Total 51,84 17

18 Table 3.a. Regression analysis of locational factors: raw inputs Subsector Independent Coeffi SE R 2 Coeffi SE R 2 variable cient cient Provincial Data Input Olive oil Olive Other oils and margarine Soybean Sunflower Oils and margarine (total) Olive Soybean Sunflower Meat & meat preparations Bovine Porcine Dairy products Milk Sheep milk Milled cereals Wheat Barley Pastas & starchy products Wheat Cereal preparations Wheat Sugar Sugar beet Feeding stuff for animals Barley Soybean Alcohols Grape Wine Grape Cider Cider apple Beer Barley Alcoholic Beverages Grape Barley Tobacco Dry Tobacco

19 Table 3.a. Regression analysis of locational factors: raw inputs. (continuation) Subsector Independent Coeffi SE R 2 Coeffi SE R 2 variable cient cient Regional Data input Olive oil Olive Other oils and margarine Soybean Sunflower Oils and margarine (total) Olive Soybean Sunflower Meat & meat preparations Bovine Porcine Dairy products Milk Sheep milk Milled cereals Wheat Barley Pastas & starchy products Wheat Cereal preparations Wheat Sugar Sugar beet Feeding stuff for animals Barley Soybean Alcohols Grape Wine Grape Cider Cider apple Beer Barley Alcoholic Beverages Grape Barley Tobacco Dry Tobacco

20 Table 3.b. Regression analysis of locational factors: total industrial employment Subsector Coeffi SE R 2 Coeffi SE R 2 cient cient Provincial Data Olive oil Other oils and margarine Oils and margarine Meat & meat preparations Dairy products Vegetable preserves Fish preserves Milled cereals Pastas & starchy products Cereal preparations Sugar Cocoa, chocolate & confectionery products Sugar, cocoa, chocolate & confectionery products Feeding stuff for animals Miscellaneous edible products Alcohols Wine Cider Beer Alcoholic Beverages Non-alcoholic Beverages Tobacco