By Eva Coll-Martinez
Creative service industries (CSI)’s agglomeration rapidly decays with distance. This fact suggests that for CSI higher expected returns in terms of productivity arise from being agglomerated at the city centre. However, previous studies have not discussed how market potential effects could mitigate the agglomeration advantages for CSI. In this regard, I estimate the effects of having more near CSI firms on productivity in Barcelona controlling for specific neighbouring characteristics as demand factors and cultural amenities.