IDEAS home Printed from https://ideas.repec.org/p/mde/wpaper/0018.html
   My bibliography  Save this paper

Does the location of manufacturing determine service sectors’ location choices? Evidence from Portugal

Author

Listed:
  • Nuno Crespo

    (ISCTE – Lisbon University Institute, Department of Economics and ERC/UNIDE)

  • Maria Paula Fontoura

    (ISEG (School of Economics and Management), Technical University of Lisbon and UECE (Research Unit on Complexity and Economics))

Abstract

Considering the case of Portugal over the period 1995-2000, this paper analyses whether the location of market services is explained by the geographical proximity of the industrial sectors that use these services as intermediate inputs. A rather detailed level of regional disaggregation is used, namely the county level (275 counties). This influence is confirmed by the results of some location indices and by the regressions made for each sector. An alternative spatial unit is also used, consisting of the county itself combined with those with which it shares boundaries, showing the relevance of the level of regional disaggregation for the results obtained.

Suggested Citation

  • Nuno Crespo & Maria Paula Fontoura, 2009. "Does the location of manufacturing determine service sectors’ location choices? Evidence from Portugal," GEE Papers 0018, Gabinete de Estratégia e Estudos, Ministério da Economia, revised Sep 2009.
    • Handle: RePEc:mde:wpaper:0018
    as

    Download full text from publisher

    File URL: https://www.gee.gov.pt/RePEc/WorkingPapers/GEE_PAPERS_18.pdf
    File Function: First version, 2009
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Brulhart, Marius & Traeger, Rolf, 2005. "An account of geographic concentration patterns in Europe," Regional Science and Urban Economics, Elsevier, vol. 35(6), pages 597-624, November.
    2. Benjamin Nefussi & Cyrille Schwellnus, 2010. "Does FDI in manufacturing cause FDI in business services? Evidence from French firm-level data," Canadian Journal of Economics, Canadian Economics Association, vol. 43(1), pages 180-203, February.
    3. Keith Head & Thierry Mayer, 2004. "Market Potential and the Location of Japanese Firms in the European Union," Post-Print hal-00267438, HAL.
    4. Amiti, Mary & Smarzynska Javorcik, Beata, 2008. "Trade costs and location of foreign firms in China," Journal of Development Economics, Elsevier, vol. 85(1-2), pages 129-149, February.
    5. Tomasz Brodzicki & Dorota Ciolek, 2008. "Spatial econometric analysis of the determinants of location of manufacturing industry and market services sectors in Poland," Working Papers of Economics of European Integration Division 0802, The Univeristy of Gdansk, Faculty of Economics, Economics of European Integration Division, revised Sep 2016.
    6. Karen Helen Midelfart-Knarvik & Henry G. Overman & Stephen Redding & Anthony J. Venables, 2002. "Integration and Industrial Specialisation in the European Union," Revue Économique, Programme National Persée, vol. 53(3), pages 469-481.
    7. Keith Head & Thierry Mayer, 2004. "Market Potential and the Location of Japanese Investment in the European Union," The Review of Economics and Statistics, MIT Press, vol. 86(4), pages 959-972, November.
    8. repec:hal:wpspec:info:hdl:2441/10192 is not listed on IDEAS
    9. Marius Brülhart, 2001. "Evolving geographical concentration of European manufacturing industries," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 137(2), pages 215-243, June.
    10. K.H. Midelfart & H.G. Overman & S.J. Redding & A.J. Venables, 2000. "The location of European industry," European Economy - Economic Papers 2008 - 2015 142, Directorate General Economic and Financial Affairs (DG ECFIN), European Commission.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Bagoulla, Corinne & Péridy, Nicolas, 2011. "Market access and the other determinants of North–South manufacturing location choice: An application to the Euro-Mediterranean area," Economic Systems, Elsevier, vol. 35(4), pages 537-561.
    2. Spies, Julia, 2010. "Network and border effects: Where do foreign multinationals locate in Germany?," Regional Science and Urban Economics, Elsevier, vol. 40(1), pages 20-32, January.
    3. Combes, Pierre-Philippe & Overman, Henry G., 2004. "The spatial distribution of economic activities in the European Union," Handbook of Regional and Urban Economics, in: J. V. Henderson & J. F. Thisse (ed.), Handbook of Regional and Urban Economics, edition 1, volume 4, chapter 64, pages 2845-2909, Elsevier.
    4. Natalia Vechiu & Farid Makhlouf, 2014. "Economic integration and specialization in production in the EU27: does FDI influence countries’ specialization?," Empirical Economics, Springer, vol. 46(2), pages 543-572, March.
    5. Nuno Crespo & Maria Paula Fontoura, 2008. "Regional Integration and International Economic Geography in the Portuguese Case - an update," Working Papers Department of Economics 2008/51, ISEG - Lisbon School of Economics and Management, Department of Economics, Universidade de Lisboa.
    6. Luigi Benfratello & Davide Castellani & Anna D'Ambrosio, 2024. "Migration and the location of MNE activities: Evidence from Italian provinces," Journal of Regional Science, Wiley Blackwell, vol. 64(2), pages 428-461, March.
    7. Mayer, T. & Mejean, I. & Nefussi, B., 2010. "The location of domestic and foreign production affiliates by French multinational firms," Journal of Urban Economics, Elsevier, vol. 68(2), pages 115-128, September.
    8. Jens Suedekum, 2006. "Concentration and Specialization Trends in Germany since Re-unification," Regional Studies, Taylor & Francis Journals, vol. 40(8), pages 861-873.
    9. Gregory Corcos & Massimo Del Gatto & Giordano Mion & Gianmarco I.P. Ottaviano, 2012. "Productivity and Firm Selection: Quantifying the ‘New’ Gains from Trade," Economic Journal, Royal Economic Society, vol. 122(561), pages 754-798, June.
    10. Longhi, Christian & Musolesi, Antonio & Baumont, Catherine, 2014. "Modeling structural change in the European metropolitan areas during the process of economic integration," Economic Modelling, Elsevier, vol. 37(C), pages 395-407.
    11. Andrea Gauselmann & Philipp Marek, 2012. "Regional determinants of MNE’s location choice in post-transition economies," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 39(4), pages 487-511, November.
    12. Steven Poelhekke & Frederick Van der Ploeg, 2008. "Growth, Foreign Direct Investment and Urban Concentrations: Unbundling Spatial Lags," CESifo Working Paper Series 2474, CESifo.
    13. Ksenia Gonchar & Philipp Marek, 2013. "Natural-resource or market-seeking FDI in Russia? An empirical study of locational factors affecting the regional distribution of FDI entries," HSE Working papers WP BRP 26/EC/2013, National Research University Higher School of Economics.
    14. CRESPO, Nuno & FONTOURA, Maria Paula, 2013. "Regional Integration And Internal Economic Geography - An Empirical Evaluation With Portuguese Data," Regional and Sectoral Economic Studies, Euro-American Association of Economic Development, vol. 13(2), pages 99-116.
    15. Oleksandr Shepotylo, 2012. "Spatial complementarity of FDI: the example of transition countries," Post-Communist Economies, Taylor & Francis Journals, vol. 24(3), pages 327-349, October.
    16. Frances Ruane & Xiaoheng Zhang, 2007. "Where do MNEs Expand Production: Location Choices of the Pharmaceutical Industry in Europe after 1992," Papers WP211, Economic and Social Research Institute (ESRI).
    17. Anna Missiaia, 2016. "Where do we go from here? Market access and regional development in Italy (1871–1911)," European Review of Economic History, European Historical Economics Society, vol. 20(2), pages 215-241.
    18. Görg, Holger & Lauber, Verena & Meyer, Birgit & Nunnenkamp, Peter, 2008. "Firm heterogeneity and choice of ownership structure: an empirical analysis of German FDI in India," Kiel Working Papers 1462, Kiel Institute for the World Economy (IfW Kiel).
    19. Kuo-I Chang & Kazunobu Hayakawa & Toshiyuki Matsuura, 2014. "Location choice of multinational enterprises in China: Comparison between Japan and Taiwan," Papers in Regional Science, Wiley Blackwell, vol. 93(3), pages 521-537, August.
    20. Jonathan Jones, 2017. "Agglomeration economies and the location of foreign direct investment: A meta-analysis," Journal of Regional Science, Wiley Blackwell, vol. 57(5), pages 731-757, November.

    More about this item

    Keywords

    Services; Manufacturing Industry; Location of Economic Activity; Portugal.;
    All these keywords.

    JEL classification:

    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
    • R30 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - General

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:mde:wpaper:0018. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Joana Almodovar (email available below). General contact details of provider: https://edirc.repec.org/data/geegvpt.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.