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Does the location of manufacturing determine service sectors’ location choices? Evidence from Portugal

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  • Nuno CRESPO
  • Maria Paula FONTOURA

Abstract

Considering the case of Portugal over the period 1995-2000, this paper analyses whether the location of market services is explained by the geographical proximity of the industrial sectors that use these services as intermediate inputs. A rather detailed level of regional disaggregation is used, namely the county level (275 counties). This influence is confirmed by the results of some location indices and by the regressions made for each sector. An alternative spatial unit is also used, consisting of the county itself combined with those with which it shares boundaries, showing the relevance of the level of regional disaggregation for the results obtained.

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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_6

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Related research

Keywords: services; manufacturing industry; location of economic activity; Portugal.;

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  1. Karen Helen Midelfart-Knarvik & Henry G. Overman & Stephen Redding & Anthony J. Venables, 2002. "Integration and Industrial. Specialisation in the European Union," Revue économique, Presses de Sciences-Po, vol. 53(3), pages 469-481.
  2. Marius Brülhart, & Rolf Traeger, 2003. "An Account of Geographic Concentration Patterns in Europe," The Institute for International Integration Studies Discussion Paper Series iiisdp02, IIIS.
  3. K.H. Midelfart & H.G. Overman & S.J. Redding & A.J. Venables, 2000. "The location of European industry," European Economy - Economic Papers 142, Directorate General Economic and Monetary Affairs (DG ECFIN), European Commission.
  4. Head, Charles Keith & Mayer, Thierry, 2002. "Market Potential and the Location of Japanese Investment in the European Union," CEPR Discussion Papers 3455, C.E.P.R. Discussion Papers.
  5. Benjamin Nefussi & Cyrille Schwellnus, 2010. "Does FDI in manufacturing cause FDI in business services? Evidence from French firm-level data," Canadian Journal of Economics, Canadian Economics Association, vol. 43(1), pages 180-203, February.
  6. Amiti, Mary & Smarzynska Javorcik, Beata, 2008. "Trade costs and location of foreign firms in China," Journal of Development Economics, Elsevier, vol. 85(1-2), pages 129-149, February.
  7. Tomasz Brodzicki & Dorota Ciolek, 2008. "Spatial econometric analysis of the determinants of location of manufacturing industry and market services sectors in Poland," Working Papers 0802, Economics of European Integration Department, Faculty of Economics, University of Gdansk, Poland.
  8. Marius Brülhart, 2001. "Evolving geographical concentration of European manufacturing industries," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 137(2), pages 215-243, June.
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