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Business services and the Baumol disease

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  • Henk L.M. Kox

Abstract

The business services industry represents a large and fast-growing chunk of the Dutch economy, approaching the size of the total manufacturing industry. The industry, however, has displayed stagnating productivity growth, accompanied in some years by a fall in productivity. Do these stylised facts imply that the Dutch economy is inevitably headed for the “Baumol disease”? Investigating this question, this paper reviews policy options that might improve the productivity record of the business services industry and strengthen its contributions to the productivity of client industries.

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File URL: http://128.118.178.162/eps/dev/papers/0309/0309007.pdf
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Bibliographic Info

Paper provided by EconWPA in its series Development and Comp Systems with number 0309007.

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Length: 6 pages
Date of creation: 21 Sep 2003
Date of revision:
Handle: RePEc:wpa:wuwpdc:0309007

Note: Type of Document - adobe PDF; pages: 6 ; figures: included
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Web page: http://128.118.178.162

Related research

Keywords: business services; impact on macro-economic productivity growth;

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  1. Antonelli, Cristiano, 2001. "The Microeconomics of Technological Systems," OUP Catalogue, Oxford University Press, number 9780199245536.
  2. Nicolai J. Foss, 1999. "The Use of Knowledge in Firms," Journal of Institutional and Theoretical Economics (JITE), Mohr Siebeck, Tübingen, vol. 155(3), pages 458-, September.
  3. Baumol, William J, 1972. "Macroeconomics of Unbalanced Growth: Reply," American Economic Review, American Economic Association, vol. 62(1), pages 150, March.
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