41st Congress of the European Regional Science Association: "European Regional Development Issues in the New Millennium and their Impact on Economic Policy", 29 August - 1 September 2001, Zagreb, Croatia
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.