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The driving forces of service localization during the 20th century : evidence from the United States

L. Cermeno, Alexandra LU (2019) In European Review of Economic History 23(2). p.145-174
Abstract
Despite the expanding role of services in the global economy, economic history has paid lit-tle attention to their geographic localization. This paper provides a description of the increasing specialization and localization patterns of services across US counties compared to other sectors from 1930 to 2010. It stresses that market potential influences most of these changes. I use cen-sus employment data by sector to re-examine the debate of comparative advantage vs. economic geography on county location coeÿcients for services. The interaction between county and indus-try characteristics shows that the geography of services has been influenced by market potential since 1980. OLS and 2SLS results suggest a cumulative effect of increasing... (More)
Despite the expanding role of services in the global economy, economic history has paid lit-tle attention to their geographic localization. This paper provides a description of the increasing specialization and localization patterns of services across US counties compared to other sectors from 1930 to 2010. It stresses that market potential influences most of these changes. I use cen-sus employment data by sector to re-examine the debate of comparative advantage vs. economic geography on county location coeÿcients for services. The interaction between county and indus-try characteristics shows that the geography of services has been influenced by market potential since 1980. OLS and 2SLS results suggest a cumulative effect of increasing returns to scale that enhanced the agglomeration of services through linkages with other services and manufacturing firms. This provides a complementary view on the rise and transformation of the Manufacturing Belt as the cradle of the service economy. (Less)
Please use this url to cite or link to this publication:
author
organization
publishing date
type
Contribution to journal
publication status
published
subject
keywords
new economic geography, market potential, service location, United States
in
European Review of Economic History
volume
23
issue
2
pages
145 - 174
publisher
Cambridge University Press
external identifiers
  • scopus:85072158669
ISSN
1474-0044
DOI
10.1093/ereh/hey011
project
The evolution regional economies in the Nordic region – A long run approach
language
English
LU publication?
yes
id
9acb8853-a16f-473e-b642-4efa5b335bea
date added to LUP
2018-04-16 09:22:30
date last changed
2020-10-07 05:50:00
@article{9acb8853-a16f-473e-b642-4efa5b335bea,
  abstract     = {Despite the expanding role of services in the global economy, economic history has paid lit-tle attention to their geographic localization. This paper provides a description of the increasing specialization and localization patterns of services across US counties compared to other sectors from 1930 to 2010. It stresses that market potential influences most of these changes. I use cen-sus employment data by sector to re-examine the debate of comparative advantage vs. economic geography on county location coeÿcients for services. The interaction between county and indus-try characteristics shows that the geography of services has been influenced by market potential since 1980. OLS and 2SLS results suggest a cumulative effect of increasing returns to scale that enhanced the agglomeration of services through linkages with other services and manufacturing firms. This provides a complementary view on the rise and transformation of the Manufacturing Belt as the cradle of the service economy.},
  author       = {L. Cermeno, Alexandra},
  issn         = {1474-0044},
  language     = {eng},
  number       = {2},
  pages        = {145--174},
  publisher    = {Cambridge University Press},
  series       = {European Review of Economic History},
  title        = {The driving forces of service localization during the 20th century : evidence from the United States},
  url          = {http://dx.doi.org/10.1093/ereh/hey011},
  doi          = {10.1093/ereh/hey011},
  volume       = {23},
  year         = {2019},
}