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Localization of Business Services in European Regions: Large Urban Areas Stand Out

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  • José A. Camacho-Ballesta
  • Yulia Melikhova
  • Manuel Hernández-Peinado

Abstract

The recent increase in business services in terms of both value added and employment has had a positive effect on regional economies, helping them to create a comparative advantage and contributing to the general development of regional productive systems. This heterogeneous set of activities is characterized, among others, by its uneven distribution in the territory. In this paper we aim to identify the key factors that influence the location of business services within the NUTS 2 regions of the European Union. Using a multivariate analytical approach (combining a principal components factor analysis and a multiple linear regression by means of ordinary least squares), four key factors have been identified. In terms of their influence on the location of business services, we can pinpoint the following factors: urban dimension, competitiveness, accessibility and economic dynamism. It was found that business services tend to locate in urban, densely populated and dynamic areas with high levels of competitiveness and easy access.

Suggested Citation

  • José A. Camacho-Ballesta & Yulia Melikhova & Manuel Hernández-Peinado, 2014. "Localization of Business Services in European Regions: Large Urban Areas Stand Out," European Planning Studies, Taylor & Francis Journals, vol. 22(10), pages 2094-2115, October.
    • Handle: RePEc:taf:eurpls:v:22:y:2014:i:10:p:2094-2115
    DOI: 10.1080/09654313.2013.819416
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    References listed on IDEAS

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    1. Henk Kox & Luis Rubalcaba, 2007. "Business services and the changing structure of European economic growth," CPB Memorandum 183, CPB Netherlands Bureau for Economic Policy Analysis.
    2. Kox, Henk L.M. & Rubalcaba, Luis, 2007. "Analysing the contribution of business services to European economic growth," MPRA Paper 2003, University Library of Munich, Germany.
    3. Luis Rubalcaba & Henk Kox, 2007. "The Growth of European Business Services," Palgrave Macmillan Books, in: Luis Rubalcaba & Henk Kox (ed.), Business Services in European Economic Growth, chapter 1, pages 15-38, Palgrave Macmillan.
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