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Sectoral Diversity in Regions, Empirical Tests

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  • Jonas Kjellgren

Abstract

The present paper studies localisation economies from a service industry perspective and especially the spatial location structure of the consumer- and producer service sector in Sweden. The service sector and especially the producer input sector is assumed to handle specialised goods (inputs) and theory therefore suggests a certain degree of monopolistic chamberlinian competition amongst the firms in this sector. Theory also proposes that firms within service-industries manage so-called non-tradable items and should therefore be influenced by intra- rather than interregional demand in their location decision. The service sector is also assumed to be relatively labour intensive and is therefore dependent on a pooled labour market with specialised skills. Population density should therefore be an important determinant in determining the proliferation of those sectors in a region.

Suggested Citation

  • Jonas Kjellgren, 2001. "Sectoral Diversity in Regions, Empirical Tests," ERSA conference papers ersa01p209, European Regional Science Association.
    • Handle: RePEc:wiw:wiwrsa:ersa01p209
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