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Explaining Size Differentiation of Business Service Centres

Author

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  • Robert J. Bennett

    (Department of Geography, University of Cambridge, Downing Place, Cambridge CB2 3EN, England, UK, rjb7@cus.cam.ac.uk)

  • Daniel J. Graham

    (Department of Computing, Imperial College London, 180 Queensgate, London SW7 2BZ, England, UK, d.j.graham@ic.ac.uk)

Abstract

This paper assesses the differentiation between business centres in Britain using data on business location from the Census of Employment analysed at postcode district level. The paper uses a combination of micro-analytical, central place theory and interregional trade theory to argue that centres can be expected to be differentiated from each other in the form of a hierarchy. The paper uses a spatial interaction model to test various possible forms of hierarchy. A five-level hierarchy is demonstrated for national/international, regional, sub-regional and local centres, as well as sub-regional centres that are 'shadowed' by nearby regional centres. Whilst the paper is exploratory, so that we would not argue that any one centre is rigidly at any single position in the hierarchy, the paper strongly demonstrates the continued importance of urban hierarchy in business location.

Suggested Citation

  • 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.
    • Handle: RePEc:sae:urbstu:v:35:y:1998:i:9:p:1457-1480
    DOI: 10.1080/0042098984231
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    References listed on IDEAS

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    1. Barry Lentnek & Alan MacPherson & David Phillips, 1995. "A Market Coverage Model For Producer Services," Papers in Regional Science, Wiley Blackwell, vol. 74(4), pages 389-399, October.
    2. Krugman, Paul, 1991. "Increasing Returns and Economic Geography," Journal of Political Economy, University of Chicago Press, vol. 99(3), pages 483-499, June.
    3. 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.
    4. Krugman, Paul & Venables, Anthony J., 1996. "Integration, specialization, and adjustment," European Economic Review, Elsevier, vol. 40(3-5), pages 959-967, April.
    5. William B. Beyers & David P. Lindahl, 1996. "Explaining The Demand For Producer Services: Is Cost‐Driven Externalization The Major Factor?," Papers in Regional Science, Wiley Blackwell, vol. 75(3), pages 351-374, July.
    6. William J. Coffey & Réjean Drolet & Mario Polèse, 1996. "The Intrametropolitan Location Of High Order Services: Patterns, Factors And Mobility In Montreal," Papers in Regional Science, Wiley Blackwell, vol. 75(3), pages 293-323, July.
    7. Krugman, Paul, 1993. "On the number and location of cities," European Economic Review, Elsevier, vol. 37(2-3), pages 293-298, April.
    8. T J Fik & G F Mulligan, 1990. "Spatial Flows and Competing Central Places: Towards a General Theory of Hierarchical Interaction," Environment and Planning A, , vol. 22(4), pages 527-549, April.
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    Citations

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    Cited by:

    1. Robert Bennett & William Bratton & Paul Robson, 2000. "Business Advice: The Influence of Distance," Regional Studies, Taylor & Francis Journals, vol. 34(9), pages 813-828.
    2. Tom Hashimoto & Vladimír Pažitka & Dariusz Wójcik, 2022. "The spatial reach of financial centres: An empirical investigation of interurban trade in capital market services," Urban Studies, Urban Studies Journal Limited, vol. 59(6), pages 1255-1274, May.
    3. 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.
    4. Makoto Okumura & Makoto Tsukai, 2014. "Business service location with spatially stochastic demands: agglomeration economies generated by interaction costs and localized uncertain demand – an optimal stock location model approach," Chapters, in: Charlie Karlsson & Börje Johansson & Kiyoshi Kobayashi & Roger R. Stough (ed.), Knowledge, Innovation and Space, chapter 7, pages 160-179, Edward Elgar Publishing.
    5. James M. Lutz, 2001. "Determinants of Population Growth in Urban Centres in the Republic of Ireland," Urban Studies, Urban Studies Journal Limited, vol. 38(8), pages 1329-1340, July.
    6. John B. Parr & Leslie Budd, 2000. "Financial Services and the Urban System: An Exploration," Urban Studies, Urban Studies Journal Limited, vol. 37(3), pages 593-610, March.
    7. Robert J. Bennett & Paul J. A. Robson & William J. A. Bratton, 2001. "The Influence of Location on the Use by SMEs of External Advice and Collaboration," Urban Studies, Urban Studies Journal Limited, vol. 38(9), pages 1531-1557, August.
    8. Anderson Cavalcante & Renan P. Almeida & Nathaniel Baker, 2016. "The urban dynamics of financial services: centralities in the metropolis [A dinâmica urbana dos serviços financeiros: centralidades na metrópole]," Nova Economia, Economics Department, Universidade Federal de Minas Gerais (Brazil), vol. 26(spe), pages 1245-1285, May.

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