1. Services includes: Intro to Services Urban Hierarchies Central Place Theory

2. Introduction

3. 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

4. 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

5. Percentage of GDP from Services 1990 - 2016

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

7. 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

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 Economic Bases of U.S. Cities (somewhat outdated)

9. Urban Hierarchies

10. Central Place Theory

11. 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.

12. Central Place Theory

13. 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

15. 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?

16. Market areas or hinterland representative shapes
FIGURE 12-17

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)

18. 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

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

26. Market Areas, Range, and Threshold for Kroger Supermarkets

27. Kroger vs. UDCs (like a 7-11)

28. 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

29. World Cities

30. Geography of Talent

31. 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!

32. 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

33. FIGURE 12-15a

34. FIGURE 12-15b

35. 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)

36. Megalopolis

37. Megalopolis

38. 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%)

39. Percentage of Population Living in Urban Settlements

40. 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

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