Holl A. (2012) Market potential and firm-level productivity in Spain. Journal of Economic Geography 12(6): 1191-1215

Abstract. The literature has documented a large degree of heterogeneity across firms in terms of productivity. In this article, I focus on market potential as a source of differences in productivity across Spanish manufacturing firms. Market potential is conditioned by the existing transport infrastructure. Transport infrastructure investment improves accessibility to input and output markets and thus increases market potential.