Producer Services, Economic Geograpy and Services
until further notice
SourceJournal of Regional Science, 39, 3, (1999), pp. 539-572
Article / Letter to editor
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Journal of Regional Science
SubjectInternationalisering van Europa
We investigate how the incorporation of producer services linkages affects the outcome of an economic geography model. We specify the production of manufactures such that a variety of producer services is needed to transform tradable unfinished goods into final consumption goods. We find that service linkages promote the concentration of economic activity in a single region, but whether full concentration is achieved depends on the costs and mode of services trade. Applying the model to a multiregion world shows that incorporating producer services may also give rise to regions that specialize in different economic activities.
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