Alañón Pardo, ÁngelWalsh, Patrick J.Myro Sánchez, Rafael2023-06-172023-06-172018-110377-733210.1007/s00181-017-1307-5https://hdl.handle.net/20.500.14352/13199This paper focuses on industrial location, assuming that entrepreneurs not only consider the advantages associated with a certain municipality, but also those coming from nearby areas. Exploratory analysis reflects the existence of spatial patterns in the creation of manufacturing establishments and sheds light on the geographical scope on which agglomeration economies operate in industrial location. Spatial Probit models and standard Probit models with spatially lagged explanatory variables are estimated to test whether neighboring municipalities’ location decisions and characteristics, including agglomeration economies, matter in industrial location choices. Results show that neighboring municipalities location decisions and characteristics help to explain location decisions of new establishments for 11 manufacturing industries in Spanish municipalities (NUTS V) over the period 1991–1995.engjournal articlehttps://doi.org/10.1007/s00181-017-1307-5open access338.45L6R3Spatial location modelsGeographical scope agglomeration economiesIndustrial locationSpainEconomía regionalEmpresasEconomía industrial5311 Organización y Dirección de Empresas