Industrial Employment Growth in Spanish Regions - the Role Played by Size, Innovation, and Spatial Aspects



According to Figure 3, six regions can be classified as Group I, less developed regions
supported by small firms
: Balearic Islands, Canary Islands, Extremadura, Andalucia, Castilla
y Leon and Galicia, the last two very close to national average. Four regions belong to Group
IV,
industrialised regions based on large firms: Catalonia, Vasque Country, Navarre, and
Cantabria. Group II,
industrialised regions based on small firms is composed by five regions:
Murcia, Aragon, Comunidad Valenciana, Castilla-La Mancha and La Rioja. Finally, Madrid
and Asturias belong to Group III,
less industrialised regions based on large firms, but
Madrid’s special characteristics advice us to give it a different treatment.

If the first hypothesis assumed in the introduction is true, then the regions with the highest
growth should be those classified in Groups I and, above all, Group II: industrialised regions
with an important presence of small firms in their industrial structure.

1.2. Spanish Regional Growth.

The growth of Spanish regions during the period 1998 to 2002 is analysed taking into account
three variables: Employment; and Productivity, measured as Gross Added Value at constant
prices by employee. Table 1 presents the results for both variables:

Table 1.- Growth of Employment and Productivity. 1998-2002.

________Employment________

__________Productivity__________

Andalucia________________________

_______________7,67_______________

_______________2,22_______________

Aragon________________________

________________9,38________________

________________-2,43________________

Asturias____________________________

_______________13,74_______________

_______________-2,07_______________

Balearic Islands___________________

_______________6,00_______________

________________3,80________________

Canary Islands___________________

________________1,00________________

________________9,91________________

Cantabria_______________________

_______________15,88_______________

_______________-1,98_______________

Castilla y Leon____________________

________________8,85________________

_______________2,19_______________

Castilla - La Mancha_____________

_______________13,92_______________

________________3,17________________

Catalonia_________________________

_______________2,60_______________

_______________6,18_______________

Comunidad Valenciana___________

________________8,26________________

________________-0,11________________

Extremadura___________________

_______________16,67_______________

________________6,73________________

Galicia___________________________

_______________11,81_______________

________________5,19________________



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