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'High order' producer services in metropolitan Canada: How footloose are they?

Book or journal references : Regional Studies, vol. 37, pp. 469-490 (2003).

Author(s) : Wernerheim , C. M. and Sharpe , C. A.

Abstract :

This paper builds on the growing body of international research suggesting that the notion of engineering regional comparative advantage and economic growth by attracting 'footloose' high order producer services is seriously flawed. Using Canadian metropolitan, provincial and national data for two disaggregated producer service industries we find that these industries are less footloose and provide less employment than is often believed. Our empirical analysis suggests that the conditions which favour regional economic growth and give rise to locational advantage may not be sufficiently responsive to government policy to generate expected spin-off effects in the absence of a supporting manufacturing sector, or close proximity to customers. The interaction between the industrial organization and the spatial characteristics of this group of service firms may be more important than previously recognized.


Keywords :

producer services; concentration; location; employment estimates REGIONAL ECONOMIC-DEVELOPMENT; BUSINESS SERVICES; UNITED-KINGDOM; PERIPHERAL REGIONS; EMPIRICAL-EVIDENCE; GLOBAL ECONOMY; URBAN SYSTEM; SMALL FIRMS; SOUTH-EAST; LOCATION

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