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The role of services in regional and urban development: A reappraisal of our understanding

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  • Sven Illeris

Abstract

A first approach is a primarily theoretical re-examination of the economic base model. It is concluded that only with substantial modification, can it be maintained as a simple model of the interplay between sectors creating regional and urban development. A second approach is to examine empirically the notion that since service activities now show above-average growth and are above-average concentrated in big cities, they pull economic development towards big cities. This is shown not necessarily to be the case, indeed it may be called ‘the structural fallacy’. Shift-share analyses in France and Denmark in the last decades of the twentieth century show that shifts out of the big cities more than counter-balance their structural advantages. However, this is not necessarily the case everywhere or in all periods. A third approach is, using the concepts and findings of the first two, to discuss the role of services in the development of rural areas, small and medium-sized towns, and big cities in Western Europe.

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  • Sven Illeris, 2005. "The role of services in regional and urban development: A reappraisal of our understanding," The Service Industries Journal, Taylor & Francis Journals, vol. 25(4), pages 447-460, June.
    • Handle: RePEc:taf:servic:v:25:y:2005:i:4:p:447-460
    DOI: 10.1080/02642060500092097
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    1. Juan R. Cuadrado-Roura & Luis Rubalcaba & John R. Bryson (ed.), 2002. "Trading Services in the Global Economy," Books, Edward Elgar Publishing, number 2322.
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    Cited by:

    1. Gornig, Martin & Goebel, Jan, 2018. "Deindustrialisation and the polarisation of household incomes: The example of urban agglomerations in Germany," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 55(4), pages 790-806.
    2. Matthias Firgo & Peter Mayerhofer, 2015. "Wissensintensive Unternehmensdienste, Wissens-Spillovers und regionales Wachstum. Teilprojekt 1: Wissens-Spillovers und regionale Entwicklung – Welche strukturpolitische Ausrichtung optimiert das Wach," WIFO Studies, WIFO, number 58342, April.
    3. Esposito, Piero & Patriarca, Fabrizio & Salvati, Luca, 2018. "Tertiarization and land use change: The case of Italy," Economic Modelling, Elsevier, vol. 71(C), pages 80-86.
    4. Matthias Firgo & Peter Mayerhofer, 2015. "Wissens-Spillovers und regionale Entwicklung - welche strukturpolitische Ausrichtung optimiert des Wachstum?," Working Paper Reihe der AK Wien - Materialien zu Wirtschaft und Gesellschaft 144, Kammer für Arbeiter und Angestellte für Wien, Abteilung Wirtschaftswissenschaft und Statistik.
    5. Anthony GO Yeh & Fiona F Yang & Jiejing Wang, 2015. "Producer service linkages and city connectivity in the mega-city region of China: A case study of the Pearl River Delta," Urban Studies, Urban Studies Journal Limited, vol. 52(13), pages 2458-2482, October.
    6. Matthias Firgo & Peter Mayerhofer, 2016. "Wissensintensive Unternehmensdienste, Wissens-Spillovers und regionales Wachstum. Teilprojekt 3: Zur Standortstruktur von wissensintensiven Unternehmensdiensten – Fakten, Bestimmungsgründe, regionalpo," WIFO Studies, WIFO, number 59427, April.
    7. Martin Gornig & Jan Goebel, 2014. "Deindustrialization and Tertiarization and the Polarization of Household Incomes: The Example of German Agglomerations," ERSA conference papers ersa14p1172, European Regional Science Association.
    8. Glückler Johannes & Schmidt Anna Mateja & Wuttke Christian, 2015. "Zwei Erzählungen regionaler Entwicklung in Süddeutschland – vom Sektorenmodell zum Produktionssystem," ZFW – Advances in Economic Geography, De Gruyter, vol. 59(3), pages 171-187, December.
    9. Antonioli, Davide & Berardino, Claudio Di & Onesti, Gianni, 2023. "The intersectoral linkages and manufacturing productivity growth in Italian regions using the I-O approach," Structural Change and Economic Dynamics, Elsevier, vol. 66(C), pages 120-133.

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