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The role of county competitiveness and manufacturing activity on the development of business service sectors: A precursor to territorial servitization

Author

Listed:
  • Araya, Manuel

    (Costa Rica Institute of Technology (ITCR), School of Business, Cartago Campus)

  • Horváth, Krisztina

    (Regional Innovation and Entrepreneurship Research Center (RIERC), Faculty of Business and Economics, University of Pécs, Hungary.)

  • Leiva, Juan Carlos

    (Costa Rica Institute of Technology (ITCR), School of Business, Cartago Campus.)

Abstract

This study evaluates how regional competitiveness and relevant properties of the manufacturing industry—i.e., size and rate of manufacturing firms—impact changes in the rate of business service firms. By employing fixed-effects regression models on a sample of 81 Costa Rican counties during 2010-2016, the findings reveal that the quality of the local environment positively affects business service specialization. Besides, manufacturing businesses contribute to increase in the rate of business services; however, this effect is only significant in counties with a greater manufacturing base, that is, in counties with a critical mass of manufacturers, in terms of number of manufacturers.

Suggested Citation

  • Araya, Manuel & Horváth, Krisztina & Leiva, Juan Carlos, 2020. "The role of county competitiveness and manufacturing activity on the development of business service sectors: A precursor to territorial servitization," INVESTIGACIONES REGIONALES - Journal of REGIONAL RESEARCH, Asociación Española de Ciencia Regional, issue 48, pages 19-35.
    • Handle: RePEc:ris:invreg:0445
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    More about this item

    Keywords

    Territorial servitization; county competitiveness; industry configuration; Costa Rica.;
    All these keywords.

    JEL classification:

    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
    • O14 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology
    • O54 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Latin America; Caribbean
    • R58 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Regional Development Planning and Policy

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