Explaining the settlement patterns of foreigners in Spain

This paper investigates the settlement patterns of the foreign population across the Spanish provinces over the period 2000–2009 and identifies the key determinants of these patterns. To this end, the paper determines the spatial distribution of foreign residents and, based on it, incorporates explanatory variables into a model designed to understand settlement patterns. After addressing the issue of spatial dependence, the model is estimated at both the aggregate level and for major areas of origin. The results reveal that social networks and economic factors, such as unemployment and per capita income in the hosting provinces, play a key role in explaining foreigners' settlement patterns in Spain. Significant differences exist, however, when areas of origin are allowed for.

► We depict the spatial distribution of foreign residents in Spanish provinces.
► We model the settlement patterns of foreigners in Spain.
► We treat spatial dependence in our model by applying a spatial filter.
► Social networks and some economic factors influence settlement patterns.
►  There are significant differences by geographical area of origin.