Components of Urban Industrial Employment Change in a Small Open Economy: Sweden

Ohlsson, L. (1979). Components of Urban Industrial Employment Change in a Small Open Economy: Sweden. IIASA Working Paper. IIASA, Laxenburg, Austria: WP-79-032

Preview

Text WP-79-032.pdf Download (1MB) | Preview

Abstract

The dense, large urban region has often been assumed to lead a region's structural development because of agglomeration economies and easy access to both a rapidly changing market and a variety of production resources. This paper analyzes whether or not three metropolitan regions of Sweden adapted their industrial sector rapidly and successfully between 1965-75 compared to more sparsely populated parts of the country. The regions include some areas which have received industrial aid during the period.

The analysis of components of urban manufacturing employment change utilizes statistics for 110 industries. However, these industries are classified into various analytical aggregates. First of all, the paper makes a distinction between foreign-trade sheltered industries, trade-exposed raw material based industries, and footloose industries. The latter type of industries are trade exposed but not based on raw materials. Since these industries rely on the competitiveness of the value added process they can be assumed to be most flexible to changes in external conditions that possibly affect the incentives for spatial mobility.

Three kinds of changes which are external to the urban industrial sector are analyzed for the footloose industries; namely, industry differences in domestic market growth rates, changes in comparative advantage patterns and technical change. They are studied with regard to both urban and regional employment consequences and consequences for the demand for skilled labor.

Actions (login required)

View Item