Services includes: Intro to Services Urban Hierarchies Central Place Theory

Introduction

Services any activity that fulfills human wants/needs Services are located in settlements therefore our study of services is closely linked with our study of urban patterns “location” is most important consideration for profitability affluent regions tend to offer more services

Services Three types of services Consumer services (44% of all US jobs) Business services (24%) Public services (17%) In the United States, all job growth is occurring in the tertiary sector

Percentage of GDP from Services 1990 - 2016

Employment Change in the US by (sub)Sectors 2004 - 2024

Economic Base of MDC Cities Basic industries Unique collection of industries = economic base Export mainly to consumers outside settlement Brings money into community Stimulates growth of non-basic but not vice versa Calculated by comparing % employed in different industries with average for country If higher than average for country = basic MDC settlements are often classified by basic industry Non-basic industries Serve customers within settlement Does not grow the overall economy of the settlement redistributes between residents of the settlement

Economic Bases of U.S. Cities (somewhat outdated)

Urban Hierarchies

Central Place Theory

Central Place Theory Predicts how and where central places in a urban hierarchy (hamlets, villages, towns, and cities) are functionally and spatially distributed Assumes that Surface is flat with no physical barriers Region has uniform transportation network From any given place, a good or service could be sold in all directions out to a certain distance People will travel the shortest distance to access a good or service.

Central Place Theory

Central place theory First proposed by Walter Christaller (1930s) Characteristics A central place has a market area (or hinterland) nodal/functional region = hinterland Size of each market area determined by: Range Max. distance consumer is willing to travel to use a service Often expressed in time rather than spatial terms Threshold Minimum # of consumers needed to support a service

Central place theory First proposed by Walter Christaller (1930s) Characteristics A central place has a market area (or hinterland) nodal/functional region = hinterland Size of each market area determined by: Range Max. distance consumer is willing to travel to use a service Often expressed in time rather than spatial terms Threshold Minimum # of consumers needed to support a service Nesting Hinterlands in MDCs = series of hexagons of various sizes, why?

Market areas or hinterland representative shapes FIGURE 12-17

Central place theory First proposed by Walter Christaller (1930s) Characteristics A central place has a market area (or hinterland) nodal/functional region = hinterland Size of each market area determined by: Range Max. distance consumer is willing to travel to use a service Often expressed in time rather than spatial terms Threshold Minimum # of consumers needed to support a service Nesting Hinterlands in MDCs = series of hexagons of various sizes, why? What kinds of settlements do these hexagons represent? Hamlet (crossroads), village (small cluster), town (larger cluster) and city (multi-clustered)

Hierarchy (nesting) of services within Central Place Theory hamlet – very short range, very small threshold daily necessities (“low order” goods/services) gas, bread, milk, cigarettes convenience store, gas station, etc. village – short range, small threshold weekly needs hardware store, post office, dry cleaner, elementary school, diner town – medium range and threshold occasional use medical services (doctor, dentist, clinic), movie theater, restaurant, high schools (buses), etc. city – long range and threshold (“high order” goods/services) special occasions sporting events, concerts, specialists, surgery, high end retail

DO NOT FORGET ABOUT NESTING! Larger settlements will include the services found in smaller settlements as well as those only found at their level.

Market Areas, Range, and Threshold for Kroger Supermarkets

Kroger vs. UDCs (like a 7-11)

World Cities Services in world cities the entire world represents the hinterland for these cities Business: clustering of services is a product of the Ind. Rev. shows dominance of core economies headquarters of major corps., shipping hubs, finance, etc. Consumer: retail services with extensive market areas leisure services of national importance due to large thresholds, large ranges, and the presence of wealthy patrons. Broadway, publishing, fashion = NYC Hollywood makes L.A. a “major” world city Public: world cities are often the center of national or international political power/policy making Classification has changed from “dominant, major and secondary” to “alpha, beta and gamma” cities

World Cities

Geography of Talent

Rank-Size Rule vs. Primate City Rank-size rule: population of the settlement is (roughly, approximately, at least) inversely proportional to its rank compared to largest city. largest city = 12 million 2nd largest = 6 million (biggest test!!!!) 3rd largest = 4 million 4th largest = 3 million “regular” hierarchy implies higher a more evenly dist. wealth can support services outside of dominant city = MDCs Primate city: leading city is disproportionately (>> 2x) larger than other cities “irregular” = low wealth, so services cluster in 1 place = LDCs exception = Europe (has many primate cities despite wealth) PLEASE: when applying these rules be reasonable, look at overall pattern before making a judgement!

Differences between urban and rural settlements Urban areas have: Large size largely contractual relationships in rural areas, you know people on multiple levels High density requires specialization due to complexity (social groups, economic activities compete for limited space) Social heterogeneity cultural diversity, greater freedom, tolerant, can lead to a sense of isolation despite large numbers) Urbanization Increasing number of people in cities Most huge cities = LDCs (8 out of top ten largest urban areas) Megacity = metro area > 10 million

FIGURE 12-15a

FIGURE 12-15b

Differences between urban and rural settlements Urban areas have: Large size largely contractual relationships in rural areas, you know people on multiple levels High density requires specialization due to complexity (social groups, economic activities compete for limited space) Social heterogeneity cultural diversity, greater freedom, tolerant, can lead to a sense of isolation despite large numbers) Urbanization Increasing number of people in cities Most huge cities = LDCs (8 out of top ten largest urban areas) Megacity = metro area > 10 million Megalopolis = blending of metro areas (Boston to Wash. DC)

Megalopolis

Megalopolis

Differences between urban and rural settlements Urban areas have: Large size largely contractual relationship in rural areas, you know people on multiple levels High density requires specialization due to complexity, social groups, economics activities compete for limited space) Social heterogeneity cultural diversity, greater freedom, tolerant, can lead to a sense of isolation despite large numbers) Urbanization Increasing number of people in cities Most huge cities = LDCs (8 out of top ten largest urban areas) Megacity = metro area > 10 million Megalopolis = blending of metro areas (Boston to Wash. DC) Increasing % of people in cities MDCs more highly urbanized, higher % live in cities Exception = Latin America The world is 50% urbanized (US = 50% urban in 1920, now 81%)

Percentage of Population Living in Urban Settlements

Business Services Clustering in LDCs What is attracting services to move to LDCs? Offshore financial services Two functions: Taxes Privacy Cayman Islands, Panama Back offices Offshoring of business/consumer services LDCs are attractive because of: Low wages Ability to speak English India, Malaysia, Philippines

Up next: Urban Patterns The End. Up next: Urban Patterns