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Growth and Location of Economic Activity: The Spatial Dynamics of Industries in Canada 1971–2001

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  • MARIO POLÈSE
  • RICHARD SHEARMUR

Abstract

ABSTRACT A growing literature has accumulated that points to the stability of industrial location patterns. Can this be reconciled with spatial dynamics? This article starts with the premise that demonstrable regularities exist in the manner in which individual industries locate (and relocate) over space. For Canada, spatial distributions of employment are examined for seventy‐one industries over a thirty‐year period (1971–2001). Industry data is organized by “synthetic regions” based on urban size and distance criteria. “Typical” location patterns are identified for industry groupings. Industrial spatial concentrations are then compared over time using correlation analysis, showing a high degree of stability. Stable industrial location patterns are not, the article finds, incompatible with differential regional growth. Five spatial processes are identified, driving change. The chief driving force is the propensity of dynamic industries to start up in large metro areas, setting off a process of diffusion (for services) and crowding out (for manufacturing), offset by the centralizing impact of greater consumer mobility and falling transport costs. These changes do not, however, significantly alter the relative spatial distribution of most industries over time.

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  • Mario Polèse & Richard Shearmur, 2006. "Growth and Location of Economic Activity: The Spatial Dynamics of Industries in Canada 1971–2001," Growth and Change, Wiley Blackwell, vol. 37(3), pages 362-395, September.
    • Handle: RePEc:bla:growch:v:37:y:2006:i:3:p:362-395
    DOI: 10.1111/j.1468-2257.2006.00328.x
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    3. Brunow, Stephan & Hammer, Andrea & McCann, Philip, 2017. "Innovation and location in German knowledge intensive business service firms," IAB-Discussion Paper 201722, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    4. Mario Polèse & Fernando Rubiera-Morollón, 2013. "On the Difficulty of Comparing the Spatial Distribution of Service Industries Across Nations: Contrasting Spain and Canada," Advances in Spatial Science, in: Juan R. Cuadrado-Roura (ed.), Service Industries and Regions, edition 127, chapter 0, pages 365-386, Springer.
    5. Boris A. PORTNOV, 2012. "Does The Choice Of Geographic Units Matter For The Validation Of Gibrat'S Law?," Region et Developpement, Region et Developpement, LEAD, Universite du Sud - Toulon Var, vol. 36, pages 79-106.
    6. Luis Enrique Santiago, 2020. "The industries of the future in Mexico: Local and non‐local effects in the localization of “knowledge‐intensive services”," Growth and Change, Wiley Blackwell, vol. 51(2), pages 584-606, June.
    7. Boris A. Portnov, 2011. "The Change of Support Problem (COSP) and its Implications for Urban Analysis: Some Evidence from a Study of the European Urban System," ERSA conference papers ersa10p106, European Regional Science Association.
    8. Boris Portnov & Ben Reiser & Moshe Schwartz, 2012. "Does Gibrat’s law for cities hold when location counts?," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 48(1), pages 151-178, February.
    9. Evert J Meijers & Martijn J Burger, 2017. "Stretching the concept of ‘borrowed size’," Urban Studies, Urban Studies Journal Limited, vol. 54(1), pages 269-291, January.
    10. José Amorós & Christian Felzensztein & Eli Gimmon, 2013. "Entrepreneurial opportunities in peripheral versus core regions in Chile," Small Business Economics, Springer, vol. 40(1), pages 119-139, January.
    11. Mario Polèse, 2012. "The Arts and Local Economic Development: Can a Strong Arts Presence Uplift Local Economies? A Study of 135 Canadian Cities," Urban Studies, Urban Studies Journal Limited, vol. 49(8), pages 1811-1835, June.
    12. Rosés, Joan R. & Minns, Chris, 2018. "Power to the Periphery? The failure of Regional Convergence in Canada, 1890-2006," CEPR Discussion Papers 12803, C.E.P.R. Discussion Papers.
    13. Mario Polése & Fernando Rubiera-Morollon, 2011. "On the Difficulty of Comparing the Spatial Distribution of Service Industries Across Nations: Contrasting Spain and Canada. Preliminary results," ERSA conference papers ersa10p303, European Regional Science Association.
    14. Christian Felzensztein & Eli Gimmon & Claudio Aqueveque, 2013. "Entrepreneurship at the Periphery: Exploring Framework Conditions in Core and Peripheral Locations," Entrepreneurship Theory and Practice, , vol. 37(4), pages 815-835, July.
    15. Gordon Mulligan & Mark Partridge & John Carruthers, 2012. "Central place theory and its reemergence in regional science," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 48(2), pages 405-431, April.

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