Agglomeration Dynamics of Business Services
A major characteristic of the economic development in European and North America during the past 10-15 years is a fast expansion of the producer-service sector. This paper considers the location dynamics of two categories of firms: contact-intensive producer-service suppliers and other firms, where the latter form the rest of the economy. Urban regions are decomposed into urban areas, and the latter into zones. In the theoretical framework firms have randomchoice preferences and respond in a non-linear way to time distances in their contact efforts. They make their location decisions in response to local, intra-regional and extra-regional access to market demand. This leads to a non-linear system that over time generates cumulative change processes of growth and decline. The econometric analysis makes use of information about time distances between zones in urban areas as well as between urban areas in the same agglomeration and between urban areas in different agglomerations. This information is employed in an econometric model that depicts for each urban area how the number of jobs in different sectors change in response to the access to customers’ purchasing power in the entire set of urban areas. The estimation results show that the cumulative change processes feature non-linear behaviour.
|Date of creation:||12 Nov 2008|
|Contact details of provider:|| Postal: CESIS - Centre of Excellence for Science and Innovation Studies, Royal Institute of Technology, SE-100 44 Stockholm, Sweden|
Phone: +46 8 790 95 63
Web page: http://www.infra.kth.se/cesis/
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Alex Anas & Richard Arnott & Kenneth A. Small, 1998.
"Urban Spatial Structure,"
Journal of Economic Literature,
American Economic Association, vol. 36(3), pages 1426-1464, September.
- Anas, Alex & Arnott, Richard & Small, Kenneth A., 1997. "Urban Spatial Structure," University of California Transportation Center, Working Papers qt835049q3, University of California Transportation Center.
- Richard Arnott & Alex Anas & Kenneth Small, 1997. "Urban Spatial Structure," Boston College Working Papers in Economics 388., Boston College Department of Economics.
- Martin Andersson & Urban Gråsjö, 2009. "Spatial dependence and the representation of space in empirical models," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 43(1), pages 159-180, March.
- Philippe Martin & Gianmarco Ottaviano, 2001.
"Growth and Agglomeration,"
Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers)
- Johansson, Börje & Forslund, Ulla, 2005.
"The Analysis of Location, Co-location and Urbanisation Economics,"
Working Paper Series in Economics and Institutions of Innovation
46, Royal Institute of Technology, CESIS - Centre of Excellence for Science and Innovation Studies.
- Johansson, Börje & Forslund, Ulla, 2006. "The Analysis Of Location, Co-Location And Urbanisation Economies," Working Paper Series in Economics and Institutions of Innovation 67, Royal Institute of Technology, CESIS - Centre of Excellence for Science and Innovation Studies.
- Weibull, Jorgen W., 1976. "An axiomatic approach to the measurement of accessibility," Regional Science and Urban Economics, Elsevier, vol. 6(4), pages 357-379, December.
- Andersson, Martin, 2004. "Co-Location Of Manufacturing & Producer Services – A Simultaneous Equation Approach," Working Paper Series in Economics and Institutions of Innovation 8, Royal Institute of Technology, CESIS - Centre of Excellence for Science and Innovation Studies.
- Brakman,Steven & Garretsen,Harry & van Marrewijk,Charles, 2009.
"The New Introduction to Geographical Economics,"
Cambridge University Press, number 9780521875325, December.
- Börje Johansson & Johan Klaesson & Michael Olsson, 2002. "Time distances and labor market integration," Papers in Regional Science, Springer;Regional Science Association International, vol. 81(3), pages 305-327.
- Sergio Rey & Brett Montouri, 1999. "US Regional Income Convergence: A Spatial Econometric Perspective," Regional Studies, Taylor & Francis Journals, vol. 33(2), pages 143-156.
- Abdel-Rahman, H. M., 1988. "Product differentiation, monopolistic competition and city size," Regional Science and Urban Economics, Elsevier, vol. 18(1), pages 69-86, February.
- Rivera-Batiz, Francisco L., 1988. "Increasing returns, monopolistic competition, and agglomeration economies in consumption and production," Regional Science and Urban Economics, Elsevier, vol. 18(1), pages 125-153, February.
- Martin Andersson & Börje Johansson, 2008. "Innovation Ideas and Regional Characteristics: Product Innovations and Export Entrepreneurship by Firms in Swedish Regions," Growth and Change, Wiley Blackwell, vol. 39(2), pages 193-224.
- J. Barkley Rosser, 2009. "Introduction," Chapters, in: Handbook of Research on Complexity, chapter 1 Edward Elgar Publishing.
- Fujita, Masahisa, 1988. "A monopolistic competition model of spatial agglomeration : Differentiated product approach," Regional Science and Urban Economics, Elsevier, vol. 18(1), pages 87-124, February.
- Börje Johansson & Johan Klaesson & Michael Olsson, 2003. "Commuters’ non-linear response to time distances," Journal of Geographical Systems, Springer, vol. 5(3), pages 315-329, November.
When requesting a correction, please mention this item's handle: RePEc:hhs:cesisp:0153. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Vardan Hovsepyan)
If references are entirely missing, you can add them using this form.