Rethinking the role of the service sector in local economic revitalisation

Outline

This article evaluates the role of the service sector in revitalising local economies. Using case study evidence from the Fens, the view that services are “parasitic” activities is refuted. Instead, services are shown to contribute positively to local economic rejuvenation not only as “basic” activities which bring income into local economies from outside but also, just as importantly, as locally‐oriented activities which stop income from leaking out of the locality. The consequences of this reconceptualisation of services for the nature of local economic policy are addressed.