Causal relations between knowledge-intensive business services and regional employment growth

T. Brenner, Marco Capasso, M. Duschl, Koen Frenken, Tania Treibich

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Abstract

Causal relations between knowledge-intensive business services and regional employment growth. Regional Studies. This paper studies the causal relations between regional employment growth in knowledge-intensive business services (KIBS) and overall regional employment growth using German labour-market data for 1999-2012. Adopting a recently developed technique, it uses a structural vector autoregressive model in which the causal directions between KIBS and other sectors are examined including various time lags. Results show that although regional growth has a negative short-term effect on KIBS, KIBS growth has a long-term positive effect on the whole regional economy. This confirms the claim that KIBS can play a key role in regional policies.

Original languageEnglish
Pages (from-to)172-183
Number of pages12
JournalRegional Studies
Volume52
Issue number2
Early online date2017
DOIs
Publication statusPublished - 2018

Keywords

  • regional employment growth
  • growth spillovers
  • knowledge-intensive business services (KIBS)
  • industrial dynamics
  • financial geography
  • INNOVATION
  • SYSTEMS

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