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

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  • 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
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    Cited by:

    1. 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.
    2. 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.

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    More about this item

    Keywords

    Concentration; Services; European Union; Knowledge Spillovers; Technological Similarities.;
    All these 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)

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