Abstract
There is a certain optimism among policy makers concering the ability of producer services, viewed as locationally flexible, to stimulate economic growth in lagging regions. Four issues related to the location of producer services are used to critically examine this notion: (1) observed centralization and decentralization trends, (2) the influence of corporate ownership and control, (3) intrafirm functional separation, and (4) the impact of telecommunications technology. Producer service growth has not benefited central and peripheral regions equally. The empirical and conceptual evidence presented suggests that these activities have little positive impact upon lagging regions. Some essential elements of a regional strategy involving producer services are proposed.
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Coffey, W.J., Polèse, M. Producer services and regional development: A policy-oriented prespective. Papers of the Regional Science Association 67, 13–27 (1989). https://doi.org/10.1007/BF01934664
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DOI: https://doi.org/10.1007/BF01934664