A Conceptual Approach for Examining Service Sector Growth in Urban Economies: Issues and Problems in Analyzing the Service Economy

The continuing concentration of employment within the service sector of the U.S. economy has significant implications for urban regions undergoing deindustrialization and structural economic change. The growth of the service sector has evoked different opinions among social scientists and policymakers regarding the significance of service industries as recent research has pointed out the potential importance of services in export trade and as a source of future economic growth. Precise answers to questions regarding service sector growth are problematic because analyses of the service economy continue to rely upon theoretical concepts and methodological approaches that are fraught with problems. This article outlines the framework of a new conceptual approach to the service economy and discusses important issues that must be addressed in order to assess the implications of service sector growth for urban economies undergoing structural change.