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

Arbeitspapier

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 the period 1999-2012. Adopting a recently developed technique, we are able to estimate a structural vector autoregressive model in which the causal directions between KIBS and other sectors are examined including various time lags. One main finding holds 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 result confirms the claim that KIBS can play a key role in regional policies. Distinguishing between financial and nonfinancial KIBS, we find that financial KIBS have a procyclical effect on regional growth underlining the potential de-stabilizing effect of a large financial sector.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: Working Papers on Innovation and Space ; No. 04.15

Classification and Topics

• Classification: Wirtschaft ; Forecasting Models; Simulation Methods ; Technological Change: Choices and Consequences; Diffusion Processes ; General Regional Economics (includes Regional Data)
• Subject: Employment growth ; growth spillovers ; KIBS ; industrial dynamics ; financial geography

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Brenner, Thomas ; Capasso, Marco ; Duschl, Matthias ; Frenken, Koen ; Treibich, Tania
• Event: Veröffentlichung
• (who): Philipps-University Marburg, Department of Geography
• (where): Marburg
• (when): 2015

Further information

• Handle: http://hdl.handle.net/10419/147969
• Last update: 10.03.2025, 11:42 AM CET