IDEAS home Printed from https://ideas.repec.org/a/eaa/aeinde/v13y2013i2_3.html
   My bibliography  Save this article

Services Sectors’ Concentration: the European Union and the New Economic Geography

Author

Listed:
  • Astrid KRENZ

Abstract

The aim of this article is to investigate services sectors’ concentration based on employment data in the European Union and to disentangle the sector-specific developments and influential factors over time. We find that only the financial intermediation, retail trade and water transport sectors are subject to an increasing level of concentration over time. Implementing a two-way fixed effects model, we find that knowledge spillovers as well as externalities arising from technological similarities appear to be highly significant in explaining services’ concentration patterns for the European Union. Technological differences as a reason for services’ concentration only appear to have been important in the period prior to the Single European Market Enactment. Further evidence is found for the relevance of factor intensity in explaining concentration of non-market services.

Suggested Citation

  • Astrid KRENZ, 2013. "Services Sectors’ Concentration: the European Union and the New Economic Geography," Applied Econometrics and International Development, Euro-American Association of Economic Development, vol. 13(2), pages 29-44.
    • Handle: RePEc:eaa:aeinde:v:13:y:2013:i:2_3
    as

    Download full text from publisher

    File URL: http://www.usc.es/economet/reviews/aeid1323.pdf
    Download Restriction: No.
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Elisenda Paluzie & Jordi Pons & Daniel Tirado, 2001. "Regional Integration and Specialization Patterns in Spain," Regional Studies, Taylor & Francis Journals, vol. 35(4), pages 285-296.
    2. repec:hhs:iuiwop:430 is not listed on IDEAS
    3. Glenn Ellison & Edward L. Glaeser & William R. Kerr, 2010. "What Causes Industry Agglomeration? Evidence from Coagglomeration Patterns," American Economic Review, American Economic Association, vol. 100(3), pages 1195-1213, June.
    4. Marius Brülhart, 2001. "Evolving geographical concentration of European manufacturing industries," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 137(2), pages 215-243, June.
    5. Krugman, Paul, 1991. "Increasing Returns and Economic Geography," Journal of Political Economy, University of Chicago Press, vol. 99(3), pages 483-499, June.
    6. Paul Krugman & Anthony J. Venables, 1995. "Globalization and the Inequality of Nations," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 110(4), pages 857-880.
    7. Mary Amiti, 1999. "Specialization patterns in Europe," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 135(4), pages 573-593, December.
    8. Rosenthal, Stuart S. & Strange, William C., 2001. "The Determinants of Agglomeration," Journal of Urban Economics, Elsevier, vol. 50(2), pages 191-229, September.
    9. K.H. Midelfart & H.G. Overman & S.J. Redding & A.J. Venables, 2000. "The location of European industry," European Economy - Economic Papers 2008 - 2015 142, Directorate General Economic and Financial Affairs (DG ECFIN), European Commission.
    10. Cornel Oros & Camelia Romocea Turcu, 2008. "How Does Sector Concentration Evolve At Country And Region Levels? The European Case," The AMFITEATRU ECONOMIC journal, Academy of Economic Studies - Bucharest, Romania, vol. 10(24), pages 273-282, June.
    11. Hugues Jennequin, 2008. "The evolution of the geographical concentration of tertiary sector activities in Europe," The Service Industries Journal, Taylor & Francis Journals, vol. 28(3), pages 291-306, April.
    12. Amiti, Mary, 1998. "New Trade Theories and Industrial Location in the EU: A Survey of Evidence," Oxford Review of Economic Policy, Oxford University Press and Oxford Review of Economic Policy Limited, vol. 14(2), pages 45-53, Summer.
    13. Hugues Jennequin, 2008. "The evolution of the geographical concentration of tertiary sector activities in Europe," Post-Print hal-02391302, HAL.
    14. repec:bla:scandj:v:98:y:1996:i:1:p:93-110 is not listed on IDEAS
    15. ROMOCEA-TURCU, Camélia, 2009. "Specialisation Et Disparites Dans L’Europe Des Regions Et Des Pays," Regional and Sectoral Economic Studies, Euro-American Association of Economic Development, vol. 9(1).
    16. repec:fth:iniesr:430 is not listed on IDEAS
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Astrid KRENZ, 2014. "Services Sectors’ Concentration And Countries’ Specialization Patterns In The European Union: A Comparative Analysis With A Special Focus On France, Germany, Greece, And The Uk," Regional and Sectoral Economic Studies, Euro-American Association of Economic Development, vol. 14(1), pages 23-32.
    2. CRESPO, Nuno & FONTOURA, M. Paula & SIMOES, Nadia, 2015. "Spatial Centrality: An Approach With Sectoral Linkages," Applied Econometrics and International Development, Euro-American Association of Economic Development, vol. 15(1), pages 45-56.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Combes, Pierre-Philippe & Overman, Henry G., 2004. "The spatial distribution of economic activities in the European Union," Handbook of Regional and Urban Economics, in: J. V. Henderson & J. F. Thisse (ed.), Handbook of Regional and Urban Economics, edition 1, volume 4, chapter 64, pages 2845-2909, Elsevier.
    2. Simonetta Longhi & Peter Nijkamp & Iulia Traistaru, 2003. "Determinants of Manufacturing Location in EU Accession Countries," ERSA conference papers ersa03p310, European Regional Science Association.
    3. Astrid KRENZ, 2014. "Services Sectors’ Concentration And Countries’ Specialization Patterns In The European Union: A Comparative Analysis With A Special Focus On France, Germany, Greece, And The Uk," Regional and Sectoral Economic Studies, Euro-American Association of Economic Development, vol. 14(1), pages 23-32.
    4. Krenz, Astrid & Rübel, Gerhard, 2010. "Industrial localization and countries' specialization in the European Union: An empirical investigation," University of Göttingen Working Papers in Economics 106, University of Goettingen, Department of Economics.
    5. Traistaru, Iulia & Nijkamp, Peter & Longhi, Simonetta, 2002. "Regional specialization and concentration of industrial activity in accession countries," ZEI Working Papers B 16-2002, University of Bonn, ZEI - Center for European Integration Studies.
    6. Zuzana KRISTKOVA, 2010. "Impact of Common Agricultural Policy Reform on the Czech Economy - a general equilibrium approach," EcoMod2010 259600099, EcoMod.
    7. Bagoulla, Corinne & Péridy, Nicolas, 2011. "Market access and the other determinants of North–South manufacturing location choice: An application to the Euro-Mediterranean area," Economic Systems, Elsevier, vol. 35(4), pages 537-561.
    8. Jens Suedekum, 2006. "Concentration and Specialization Trends in Germany since Re-unification," Regional Studies, Taylor & Francis Journals, vol. 40(8), pages 861-873.
    9. Kristian Behrens & W. Mark Brown & Théophile Bougna, 2018. "The World Is Not Yet Flat: Transport Costs Matter!," The Review of Economics and Statistics, MIT Press, vol. 100(4), pages 712-724, October.
    10. Nuno Crespo & Maria Paula Fontoura, 2008. "Regional Integration and International Economic Geography in the Portuguese Case - an update," Working Papers Department of Economics 2008/51, ISEG - Lisbon School of Economics and Management, Department of Economics, Universidade de Lisboa.
    11. Helena Marques, 2008. "Trade And Factor Flows In A Diverse Eu: What Lessons For The Eastern Enlargement(S)?," Journal of Economic Surveys, Wiley Blackwell, vol. 22(2), pages 364-408, April.
    12. Nicole Palan, 2010. "Measurement of Specialization – The Choice of Indices," FIW Working Paper series 062, FIW.
    13. Henry Overman & Stephen Redding & Anthony J. Venables, 2001. "The Economic Geography of Trade, Production, and Income: A Survey of Empirics," CEP Discussion Papers dp0508, Centre for Economic Performance, LSE.
    14. Paolo Surico, 2003. "Geographic Concentration and Increasing Returns," Journal of Economic Surveys, Wiley Blackwell, vol. 17(5), pages 693-708, December.
    15. Astrid KRENZ & Gerhard RÜBEL, 2009. "Explaining Industrial Localization and Countries´ Specialization in the European Union: An Empirical Investigation," EcoMod2009 21500056, EcoMod.
    16. Frances Ruane & Xiaoheng Zhang, 2007. "Where do MNEs Expand Production: Location Choices of the Pharmaceutical Industry in Europe after 1992," Papers WP211, Economic and Social Research Institute (ESRI).
    17. Astrid Krenz, 2014. "Adjustment dynamics of countries' specialization patterns in the European Union," Applied Economics Letters, Taylor & Francis Journals, vol. 21(10), pages 671-674, July.
    18. Krieger-Boden, Christiane, 2002. "European integration and the case for compensatory regional policy," ERSA conference papers ersa02p240, European Regional Science Association.
    19. Marta Casanova & Vicente Orts Ríos, 2011. "Assessing the tendency of Spanish manufacturing industries to cluster: Co-localization and establishment size," Working Papers. Serie EC 2011-03, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie).
    20. Krenz, Astrid, 2010. "Services sectors' agglomeration and its interdependence with industrial agglomeration in the European Union," University of Göttingen Working Papers in Economics 107, University of Goettingen, Department of Economics.

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • L80 - Industrial Organization - - Industry Studies: Services - - - General
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eaa:aeinde:v:13:y:2013:i:2_3. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: M. Carmen Guisan (email available below). General contact details of provider: http://www.usc.es/economet/eaa.htm .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.