Geography in explaining industrial and services sectors' agglomeration in the European Union. Therefore, new dynamic panel data …' agglomeration. Several non-stationarity and co-integration relationships can be detected. Further, decomposition of effects across … and within sectors is provided. Scale economies are only important for across industries' variation in agglomeration, not …

This study investigates whether services sectors' agglomeration can be explained within a common New Economic Geography …)). The results show different strengths of agglomeration for both the industrial and services sector depending on initial …. The lower extent of services sectors' agglomeration seen in Empirics can be explained within the model. …