DO PRODUCER SERVICES INDUCE REGIONAL ECONOMIC-DEVELOPMENT

Goods production and services have become increasingly integrated within a flexible, information‐oriented system of production organization. In this context, it is argued here that producer services–carried out both within manufacturing firms and by “independent” enterprises–play a pivotal role in expanding the division of labor, productivity, and per capita income. This proposition is supported by results of an empirical analysis of metropolitan areas in major U.S. regions and in the nation as a whole. Copyright © 1990, Wiley Blackwell. All rights reserved