There are significant spatial disparities in economic activity within both developed and developing countries. While certain urban areas flourish, others, including rural regions, are falling behind. This phenomenon is known in Spain as ’España vaciada.’ Thriving urban areas are characterized by a higher concentration of firms settling there. This not only creates more employment opportunities but also results in higher wages for the local population. Understanding the reason behind the success of some regions while others lag behind has significant implications for economic mobility, productivity, and policy formulation.

This research aims to address three fundamental questions in the context of both developed and developing countries.

1. What factors influence firms’ location decisions and why do they favour economically prosperous areas?
2. What is the special role of environmental conditions for firms’ location choices, and what policies can mitigate potential losses?
3. What obstacles deter individuals from economically disadvantaged areas from relocating to more prosperous regions?

With these findings, I aim to provide valuable insights to support evidence-based policymaking that promotes the development of effective strategies for regional growth, enhance resilience in the face of environmental challenges, and improve economic mobility.