51st Congress of the European Regional Science Association: "New Challenges for European Regions and Urban Areas in a Globalised World", 30 August - 3 September 2011, Barcelona, Spain
The spatial distribution of employment in service industries is compared for Spain and Canada for nine (9) industry classes. The empirical and theoretical literature on modern services stresses the importance of agglomeration economies for high-order services. The relationship between city-size and location is examined with emphasis on cases that deviate from predicted patterns. The results for Spain and Canada reconfirm the weight of city-size as a determinant of location for high-order services. However, once one goes beyond this fairly predictable result, national differences in geography, institutions, and development come to the fore, making generalizations more difficult. Unlike most manufacturing industries, the definition and the spatial behavior of many service sectors is highly sensitive to institutional factors, creating unique patterns largely fashioned by national context.