Next Article in Journal
Sustainable Social Enterprise Model: Relationships and Consequences
Next Article in Special Issue
The Role of Embeddedness on Regional Economic Resilience: Evidence from the UK
Previous Article in Journal
Visitors’ Perception of Urban Nature Reserves in Poland
Previous Article in Special Issue
Economic Development and Female Labour Force Participation: The Case of European Union Countries
Article Menu

Export Article

Open AccessArticle

Agglomeration Economies in Small Cities and Business: The Impact of the Great Recession in Aragón (Spain)

1
Departmento de Análisis Económico, Universidad de Zaragoza Facultad de Economía y Empresa (Campus Paraíso). c/ Gran Vía 2, 50005 Zaragoza, Spain
2
Institut d'Economia de Barcelona (IEB), Facultat d’Economia i Empresa, Universitat de Barcelona, c/ John M. Keynes, 1-11, 08034 Barcelona, Spain
*
Author to whom correspondence should be addressed.
Sustainability 2019, 11(14), 3770; https://doi.org/10.3390/su11143770
Received: 20 May 2019 / Revised: 5 July 2019 / Accepted: 7 July 2019 / Published: 10 July 2019
(This article belongs to the Special Issue Regions and Economic Resilience)
  |  
PDF [601 KB, uploaded 10 July 2019]
  |  

Abstract

In this paper, we analyze the effects of productive specialization and productive diversity on employment growth at the local level during the Great Recession in Aragon, a NUTS II region in Spain. This region is characterized by (i) a high population density in the capital city (around half of the total population), giving rise to a very uneven population distribution and therefore a lot of small cities and municipalities, and (ii) a large proportion of small businesses (95% of the firms in this region have fewer than ten employees). We use annual data from 2000 to 2015 and panel data models, and grouped local business activities into three main categories: industry, construction and services. Our results show that, during this period, local specialization in any of these activities hurt local employment growth, whereas diversity had a non-significant effect on employment growth. Only in the case of services did we obtain a positive effect of diversity on local employment growth, which was restricted to the most populated cities (i.e., cities with more than 3000 inhabitants). Therefore, only diversity in services activities located in large cities contributed to employment growth during the Great Recession. View Full-Text
Keywords: local employment; agglomeration economies; small and medium-sized enterprises (SMEs), small cities; Aragón local employment; agglomeration economies; small and medium-sized enterprises (SMEs), small cities; Aragón
Figures

Figure 1

This is an open access article distributed under the Creative Commons Attribution License which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited (CC BY 4.0).
SciFeed

Share & Cite This Article

MDPI and ACS Style

González-Val, R.; Marcén, M. Agglomeration Economies in Small Cities and Business: The Impact of the Great Recession in Aragón (Spain). Sustainability 2019, 11, 3770.

Show more citation formats Show less citations formats

Note that from the first issue of 2016, MDPI journals use article numbers instead of page numbers. See further details here.

Related Articles

Article Metrics

Article Access Statistics

1

Comments

[Return to top]
Sustainability EISSN 2071-1050 Published by MDPI AG, Basel, Switzerland RSS E-Mail Table of Contents Alert
Back to Top