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How do Producer Services Affect the Location of Manufacturing Firms? The Role of Information Accessibility

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  • Olga Alonso-Villar
  • José-María Chamorro-Rivas

Abstract

The aim of this paper is to analyze the location decisions both of producer services and of manufacturing, exploring two main topics: how manufacturing and services location change when regions integrate, and how developments in telecommunications affect them both. We built a theoretical model consisting of two regions and three sectors (manufacturing, producer services, and agriculture). Given that producer services constitute a sector oriented towards information and knowledge, this is a factor that is taken into account in the explanation of their location. Numerical simulations are made in a general equilibrium framework. In contrast to previous works, we find that when regions integrate, specialization (producer services being in the core regions, and manufacturing in the periphery)—rather than convergence—arises. Besides, improvements in telecommunications may facilitate concentration of services in the core regions.

Suggested Citation

  • Olga Alonso-Villar & José-María Chamorro-Rivas, 2001. "How do Producer Services Affect the Location of Manufacturing Firms? The Role of Information Accessibility," Environment and Planning A, , vol. 33(9), pages 1621-1642, September.
    • Handle: RePEc:sae:envira:v:33:y:2001:i:9:p:1621-1642
    DOI: 10.1068/a3436
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    References listed on IDEAS

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    1. Ellison, Glenn & Glaeser, Edward L, 1997. "Geographic Concentration in U.S. Manufacturing Industries: A Dartboard Approach," Journal of Political Economy, University of Chicago Press, vol. 105(5), pages 889-927, October.
    2. Rauch James E., 1993. "Productivity Gains from Geographic Concentration of Human Capital: Evidence from the Cities," Journal of Urban Economics, Elsevier, vol. 34(3), pages 380-400, November.
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    Cited by:

    1. Olga Alonso-Villar & Jose-MarIa Chamorro-Rivas & Xulia Gonzalez-Cerdeira, 2004. "Agglomeration economies in manufacturing industries: the case of Spain," Applied Economics, Taylor & Francis Journals, vol. 36(18), pages 2103-2116.
    2. Saim Muhammad & Henk F.L. Ottens & Tom De Jong, 2008. "Modelling The Impact Of Telecommuting On Future Urbanisation In The Netherlands," Tijdschrift voor Economische en Sociale Geografie, Royal Dutch Geographical Society KNAG, vol. 99(2), pages 160-177, April.
    3. Lanaspa, Luis & Sanz-Gracia, Fernando & Vera-Cabello, María, 2016. "The (strong) interdependence between intermediate producer services' attributes and manufacturing location," Economic Modelling, Elsevier, vol. 57(C), pages 1-12.
    4. Olga Alonso-Villar, 2006. "A Reflection On The Effects Of Transport Costs Within The New Economic Geography," Working Papers 57, ECINEQ, Society for the Study of Economic Inequality.

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