The Growing Economic Specialization of Cities: Disentangling Industrial and Functional Dimensions in the Canadian Urban System, 1971–2006

Abstract

Decreasing spatial transaction and trade costs have given rise to growing economic specialization of cities. While most studies focus on industries-the final good or service produced-as the primary manifestation of urban specialization, a growing body of literature examines functions, i.e. activities and tasks performed within a given industry or firm. This paper explores how the two dimensions (industries and functions) interact across the urban system, and their relative importance is over time. Is there a general trend towards increasing functional specialization in the Canadian urban system? How much of this phenomenon is attributable to spatial shifts in regional industrial structures, as opposed to spatial divisions within industries? The paper uses a unique spatial dataset drawn from Statistics Canada Census micro-data files between 1971 and 2006. Based on the employed population, the data are spatially organized and cross-tabulated over two dimensions: industries and functions (occupational groups). A decomposition methodology is used to describe and compare the relative weights of industry and regional (functional) effects in accounting for the changing spatial division of functions across Canadian urban areas.Clear patterns of increasing functional specialization are found within the Canadian urban system. Regional effects are generally greater than industry effects, suggesting that spatial divisions of functions (spatial shifts within industries) are progressing more rapidly than regional shifts in industrial structure. As such, the findings are consistent with the broader literature on the growing spatial fragmentation of firms and parallel spatial separation of the various stages of production and service-delivery.

Occupational Employment Pattern and Functional Specialization in the Brazilian Cities

“…These results are consistent with the literature on economic specialization of cities (BADE et al, 2004;BRUNELLE, 2013;DURANTON, PUGA, 2005). Indicating that there is a pattern where large cities concentrate functions of management, research and development of companies, while small cities concentrate the production functions of companies.…”

“…It is possible, then, to state that these cities are specialized in blue-collar occupations. This functional specialization pattern, where large cities have higher proportion of white-collar occupations and small cities have higher proportion of blue-collar occupations, is according to international literature (BADE et al, 2004;BRUNELLE, 2013;DURANTON, PUGA, 2005).…”

“…Empirical evidence confirms this location pattern, that is called functional specialization, suggesting that the occupational activities related to high-level of cognitive work tend to be concentrated in large cities, whereas the capital-intensive work tends to be concentrated in small cities (ELVERY, 2010;SCOTT, 2009). Brunelle (2013) adds that since sectoral specialization is still about to be an important attribute of local economic development, regions are increasingly differentiating by specialization in activities and tasks performed within a given industry. Thus, from the point of view of regional development, it is not enough to attract a particular sector of activity, it is also necessary to analyze the profile of occupations that will happen in the region (FOCHEZATTO, 2016).…”

Handbook of Research Methods and Applications in Economic Geography Edited by CharlieKarlsson, MartinAndersson and ThereseNorman, Cheltenham, UK and Northampton, MA: Edward Elgar. 2015. xii, 648 pp. $290.00 (hardcover). ISBN 978‐0‐85793‐266‐2.

“…As high-paying, non-routine tasks have become more common and low-paying, routine tasks less common, the incomes of regional labor markets have been differentially affected. There is growing evidence that large metropolitan areas have benefited, and small metropolitan areas have suffered, as professional and management jobs have expanded and standardized production jobs have contracted (Brunelle 2013). Other notable topics in economic geography were not included but this is understandable because even a comprehensive volume like this cannot address everything in this wide field.…”

The influence of green areas on city-dwellers' perceptions of air pollution: The case of Nigde city center

“…It has been suggested that objective criteria apply to physical, social and economic functions whereas subjective criteria refer to various aspects of personal life, such as desires, expectations, happiness and pleasure (Ozturk and Ozdemir, 2013). Accordingly, research focusing on the quality of life can be categorized by applying physical (Smith et al, 1997;Mohadeseh et al, 2015), social (Zenker and Rutter, 2014;Turksever and Atalik, 2001;Theodori, 2004;Berntze and Johannessen, 2016) and economic (Brunelle, 2013;Addanki and Venkataraman, 2017;Pratt and Hutton2013) criteria. Some studies have investigated the quality of cities in a more compherensive way (Kaklauskas et al, 2018;Węziak-Białowolska, 2016;Essam and Khalil, 2012).…”