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

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  • Nuno Crespo

    (ISCTE – Lisbon University Institute, Department of Economics and ERC/UNIDE)

  • Maria Paula Fontoura

    ()
    (ISEG (School of Economics and Management), Technical University of Lisbon and UECE (Research Unit on Complexity and Economics))

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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File URL: http://www.gee.min-economia.pt/RePEc/WorkingPapers/ncpf18.pdf
File Function: First version, 2009
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Bibliographic Info

Paper provided by Gabinete de Estratégia e Estudos, Ministério da Economia e da Inovação in its series GEE Papers with number 0018.

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Length: 28 pages
Date of creation: Sep 2009
Date of revision: Sep 2009
Handle: RePEc:mde:wpaper:0018

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Keywords: Services; Manufacturing Industry; Location of Economic Activity; Portugal.;

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  1. 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.
  2. 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.
  3. Marius Brülhart & Rolf Traeger, 2003. "An Account of Geographic Concentration Patterns in Europe," ERSA conference papers ersa03p473, European Regional Science Association.
  4. 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.
  5. Amiti, Mary & Smarzynska Javorcik, Beata, 2005. "Trade Costs and Location of Foreign Firms in China," CEPR Discussion Papers 4978, C.E.P.R. Discussion Papers.
  6. 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.
  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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