This paper seeks to analyze the geographical concentration of Spanish industry to determine the scope of the spillovers, between plants, that could underlie that agglomeration. To that end, the methodology we used is that proposed in Maurel and Sédillot (1999), and put forward earlier in Ellison and Glaeser (1997). The aim of this work is twofold: a) to analyze whether spillovers are provincial in scope and b) to study if these externalities only affect firms in the same industry, or whether they also affect firms in related industries.

Key words: geographic concentration, Spanish industry, spillovers.
JEL classification: R12, R30.