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The Spatial Extent of Producer Service Markets: Hierarchical Models of Interaction Revisited

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  • Adrian Esparza
  • Andrew J. Krmenec

Abstract

ABSTRACT The traditional view of interaction in spatial markets has boon challenged by recent studies of producer service trade in the space economy. These studies find that although city‐size and distance influence the direction and spatial extent of interaction, patterns of trade oftentimes counter expectations as trade flows up the urban hierarchy and across large distances. This paper seeks to determine whether the ownership structure of establishments contributes to deviations from the traditional model of hierarchical interaction. Using trade data obtained from surveys of 547 producer service establishments, patterns of trade originating from a five‐tier urban hierarchy are examined empirically and evaluated using spatial survivor functions and logit models. The results indicate that the ownership structure of establishments contributes significantly to deviations from expected patterns of interaction. Independently owned establishments have smaller spatial markets and interact more often with smaller sized cities, Nonindependently owned establishments, in contrast, trade down and up the urban hierarchy in a manner much less sensitive to distance.

Suggested Citation

  • Adrian Esparza & Andrew J. Krmenec, 1996. "The Spatial Extent of Producer Service Markets: Hierarchical Models of Interaction Revisited," Papers in Regional Science, Wiley Blackwell, vol. 75(3), pages 375-395, July.
  • Handle: RePEc:bla:presci:v:75:y:1996:i:3:p:375-395
    DOI: 10.1111/j.1435-5597.1996.tb00670.x
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    Cited by:

    1. Waldorf, Brigitte, 2002. "Spatial hazard models: limitations and applications," ERSA conference papers ersa02p497, European Regional Science Association.
    2. Jayanti Sen & Alan Macpherson, 1998. "Regional Patterns of Business Performance Among Small and Medium Sized Public Accounting Firms in New York State," Regional Studies, Taylor & Francis Journals, vol. 32(9), pages 827-838.
    3. Robert J. Bennett & Daniel J. Graham, 1998. "Explaining Size Differentiation of Business Service Centres," Urban Studies, Urban Studies Journal Limited, vol. 35(9), pages 1457-1480, August.
    4. Jessie P. H. Poon & Bradly Eldredge & David Yeung, 2004. "Rank Size Distribution of International Financial Centers," International Regional Science Review, , vol. 27(4), pages 411-430, October.
    5. Adrian X. Esparza & Andrew J. Krmenec, 2000. "Large City Interaction in the US Urban System," Urban Studies, Urban Studies Journal Limited, vol. 37(4), pages 691-709, April.
    6. John I. Carruthers & Selma Hepp & Gerrit-Jan Knaap & Robert N. Renner, 2012. "The American Way of Land Use," International Regional Science Review, , vol. 35(3), pages 267-302, July.
    7. John I. Carruthers, 2012. "Land use regulation and regional form: a spatial mismatch?," Chapters, in: Roberta Capello & Tomaz Ponce Dentinho (ed.), Networks, Space and Competitiveness, chapter 8, pages 181-204, Edward Elgar Publishing.
    8. Brigitte Waldorf, 2003. "Spatial Patterns and Processes in a Longitudinal Framework," International Regional Science Review, , vol. 26(3), pages 269-288, July.
    9. Kenneth G. Crowther & Yacov Y. Haimes, 2010. "Development of the multiregional inoperability input‐output model (MRIIM) for spatial explicitness in preparedness of interdependent regions," Systems Engineering, John Wiley & Sons, vol. 13(1), pages 28-46, March.
    10. Taha H. Rashidi & Abolfazl (Kouros) Mohammadian, 2015. "Behavioral Housing Search Choice Set Formation," International Regional Science Review, , vol. 38(2), pages 151-170, April.

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