Agglomeration of services in American metropolitan areas

Research output: Chapter in Book/Report/Conference proceedingChapter

64 Scopus citations


The growth of many service industries among American metropolitan areas stems from an eclectic set of forces. These include market penetration effects of increasing importance of services throughout the economy, agglomeration effects in immature and deregulated industries, and institutional and infrastructure constraints. These diverse forces are interpreted as urbanization and localization economies. The two agglomeration effects are tested directly, using a power function model that relates employment and establishment growth to MSA size and initial level of employment in a local industry. Localization economies rather than the general advantages of metropolitan size best explain the growth patterns. This result implies that service industrial complexes are rapidly emerging in American metropolitan areas. -from Author

Original languageEnglish (US)
Title of host publicationGrowth & Change
Number of pages16
StatePublished - 1989

ASJC Scopus subject areas

  • Earth and Planetary Sciences(all)
  • Environmental Science(all)


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