Fortune Firms and the Fortunes of Their Headquarters Metropolises

Publisher Website
Google Scholar
Abstract
This paper tests the Noyelle and Stanback hypothesis, as extended by Hanson, that there exists a strong functional and spatial link between major corporate headquarters and producer services, such as accounting, financial, legal, management, marketing, advertising, and planning services. The 38 metropolitan areas in the United States with a 1980 population of over one million have a positive correlation betweeen employment growth in FIRE and services from 1980 to 1985 and the concentration of corporate headquarters. The correlations are weakly negative, however, for change in manufacturing jobs and the concentration of corporate headquarters, since several of the largest metropolitan areas on the East Coast and Great Lakes lost manufacturing jobs during this five-year period, despite acting as headquarters for major corporations. Nor does the Hanson hypothesis explain total employment change. It is clear that metropolitan areas having a lower proportion of manufacturing jobs are making an easier transition to the new service economy.

This publication has 0 references indexed in Scilit: