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Agglomeration Economies And Performance In Knowledge-Intensive Business Services

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  • CUI ZHANG

    (School of Economics, Jinan University, Guangzhou 510632, P. R. China)

Abstract

Most studies on the relationship between agglomeration economies and economic performance have focussed on regions in general or manufacturing. Very few papers have considered the impacts of agglomeration economies on the economic performance of knowledge-intensive business services (KIBS) firms. We propose a theoretical framework based on the characteristics of KIBS to study the precise channels through which KIBS firms benefit from specialization externalities and diversity externalities. The empirical evidence based on the software and IT services industry in China, a very dynamic branch of KIBS, shows that firms benefit from service diversity externalities but not specialization externalities, consistent with the idea of “nursery cities”.

Suggested Citation

  • Cui Zhang, 2020. "Agglomeration Economies And Performance In Knowledge-Intensive Business Services," The Singapore Economic Review (SER), World Scientific Publishing Co. Pte. Ltd., vol. 65(02), pages 457-469, March.
    • Handle: RePEc:wsi:serxxx:v:65:y:2020:i:02:n:s0217590819500048
    DOI: 10.1142/S0217590819500048
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    Cited by:

    1. Sarah Jacobs & Oladipo Olalekan David & Abigail Stiglingh-Van Wyk, 2023. "The Impact of Urbanization on Economic Growth in Gauteng Province, South Africa," International Journal of Economics and Financial Issues, Econjournals, vol. 13(2), pages 1-11, March.
    2. Wang, Xuliang & Xu, Lulu & Ye, Qin & He, Shi & Liu, Yi, 2022. "How does services agglomeration affect the energy efficiency of the service sector? Evidence from China," Energy Economics, Elsevier, vol. 112(C).

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