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Location Determinants Of Business Services Within A Region With Large Urban Asymmetries

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  • Fernando Rubiera-Morollón
  • Eva Pardos
  • Ana Gómez-Loscos

Abstract

We carry out an analysis of the determinants of location for business services within a region, as opposed to the more usual comparisons among nations or regions. The expected higher concentration patterns at this level can be further biased when one or more urban centers have a disproportionate weight in regional economic activity. We propose an econometric analysis of location determinants (scale, urbanization and agglomeration economies, human capital and infrastructures) taking into account the influence of this kind of asymmetry. To this end, we identify one region with this characteristic (a disproportionate weight of the capital city’s share with respect to the total, as shown via several location coefficients), namely the Spanish region of Aragon. Using intra-regional data, our results show that including the capital city in the regressions or not alters the conclusions on the determinants of location.

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Bibliographic Info

Article provided by Euro-American Association of Economic Development in its journal Regional and Sectoral Economic Studies.

Volume (Year): 10 (2010)
Issue (Month): 1 ()
Pages:

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Handle: RePEc:eaa:eerese:v:10:y2010:i:10_2

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Related research

Keywords: Business services; spatial economics and services location.;

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References

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  1. Luis Rubalcaba & Fernando Merino, 2005. "Urban supply--demand interrelations in business services," The Service Industries Journal, Taylor & Francis Journals, vol. 25(2), pages 163-180, March.
  2. Ciccone, Antonio & Hall, Robert E, 1996. "Productivity and the Density of Economic Activity," American Economic Review, American Economic Association, vol. 86(1), pages 54-70, March.
  3. P. W. Daniels & J. R. Bryson, 2005. "Sustaining business and professional services in a second city region," The Service Industries Journal, Taylor & Francis Journals, vol. 25(4), pages 505-524, June.
  4. George J. Stigler, 1951. "The Division of Labor is Limited by the Extent of the Market," Journal of Political Economy, University of Chicago Press, vol. 59, pages 185.
  5. Luis Rubalcaba & David Gago, 2003. "Regional concentration of innovative business services: testing some explanatory factors at European regional level," The Service Industries Journal, Taylor & Francis Journals, vol. 23(1), pages 77-94, January.
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