IDEAS home Printed from https://ideas.repec.org/a/sae/urbstu/v38y2001i3p563-591.html
   My bibliography  Save this article

The Potential Bias in Producer Service Employment Estimates: The Case of the Canadian Space Economy

Author

Listed:
  • C. Michael Wernerheim

    (Department of Economics, Memorial University of Newfoundland, StJohn's, Newfoundland, Canada, AIC 5S7, wern@mun.ca)

  • Christopher A. Sharpe

    (Department of Geography, Memorial University af Newfoundland, St John's, Newfoundland, Canada, AIC 5S7, casharpe@mun.ca)

Abstract

Footloose information technology producer services are increasingly viewed as the new engines of regional growth and employment creation. The claim is often that appropriate government policy can engineer comparative advantage in that direction by means of judicious subsidisation. The evaluation of such claims relies on accurate statistical data. We argue that attempts to distinguish in survey data or official statistics the subset of services commonly (but unofficially) known as producer services from consumer and government services may result in a potential 'bias' with implications for public policy. An input-output model is developed for estimating this bias by decomposing service industry data into its producer and consumer services content. This method can give a truer estimate of the actual employment in producer services at various spatial levels. We find a systematic bias in official data and a non-systematic bias in survey data. The model is applicable to countries and regions for which input-output data are available.

Suggested Citation

  • C. Michael Wernerheim & Christopher A. Sharpe, 2001. "The Potential Bias in Producer Service Employment Estimates: The Case of the Canadian Space Economy," Urban Studies, Urban Studies Journal Limited, vol. 38(3), pages 563-591, March.
    • Handle: RePEc:sae:urbstu:v:38:y:2001:i:3:p:563-591
    DOI: 10.1080/00420980123294
    as

    Download full text from publisher

    File URL: https://journals.sagepub.com/doi/10.1080/00420980123294
    Download Restriction: no
    File URL: https://libkey.io/10.1080/00420980123294?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. William B. Beyers & Michael J. Alvine, 1985. "Export Services In Postindustrial Society," Papers in Regional Science, Wiley Blackwell, vol. 57(1), pages 33-45, January.
    2. William B. Beyers & David P. Lindahl, 1996. "Explaining The Demand For Producer Services: Is Cost‐Driven Externalization The Major Factor?," Papers in Regional Science, Wiley Blackwell, vol. 75(3), pages 351-374, July.
    3. Ethier, Wilfred, 1979. "Internationally decreasing costs and world trade," Journal of International Economics, Elsevier, vol. 9(1), pages 1-24, February.
    4. J N Marshall & P A Wood, 1992. "The Role of Services in Urban and Regional Development: Recent Debates and New Directions," Environment and Planning A, , vol. 24(9), pages 1255-1270, September.
    5. P. N. O'Farrell & J. Zheng & P. A. Wood, 1996. "Internationalization of Business Services: An Interregional Analysis," Regional Studies, Taylor & Francis Journals, vol. 30(2), pages 101-118.
    6. Peter Hill, 1999. "Tangibles, intangibles and services: a new taxonomy for the classification of output," Canadian Journal of Economics, Canadian Economics Association, vol. 32(2), pages 426-446, April.
    7. William J. Coffey & Réjean Drolet & Mario Polèse, 1996. "The Intrametropolitan Location Of High Order Services: Patterns, Factors And Mobility In Montreal," Papers in Regional Science, Wiley Blackwell, vol. 75(3), pages 293-323, July.
    8. James R. Markusen, 1988. "Production, Trade, and Migration with Differentiated, Skilled Workers," Canadian Journal of Economics, Canadian Economics Association, vol. 21(3), pages 492-506, August.
    9. van Marrewijk, Charles & Stibora, Joachim & de Vaal, Albert & Viaene, Jean-Marie, 1997. "Producer services, comparative advantage, and international trade patterns," Journal of International Economics, Elsevier, vol. 42(1-2), pages 195-220, February.
    10. W. Richard Goe & James L. Shanahan, 1990. "A Conceptual Approach for Examining Service Sector Growth in Urban Economies: Issues and Problems in Analyzing the Service Economy," Economic Development Quarterly, , vol. 4(2), pages 144-153, May.
    11. Ethier, Wilfred J, 1982. "National and International Returns to Scale in the Modern Theory of International Trade," American Economic Review, American Economic Association, vol. 72(3), pages 389-405, June.
    12. Romer, Paul M, 1987. "Growth Based on Increasing Returns Due to Specialization," American Economic Review, American Economic Association, vol. 77(2), pages 56-62, May.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. C. Wernerheim & M. Waples, 2013. "Demand patterns and Canada’s trade in services," International Economics and Economic Policy, Springer, vol. 10(2), pages 159-181, June.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Joseph F. Francois & Douglas Nelson, 2002. "A Geometry Of Specialisation," Economic Journal, Royal Economic Society, vol. 112(481), pages 649-678, July.
    2. Colantone, Italo & Crinò, Rosario, 2014. "New imported inputs, new domestic products," Journal of International Economics, Elsevier, vol. 92(1), pages 147-165.
    3. Eckel, Carsten, 2008. "Globalization and specialization," Journal of International Economics, Elsevier, vol. 75(1), pages 219-228, May.
    4. Benarroch, Michael & Weder, Rolf, 2006. "Intra-industry trade in intermediate products, pollution and internationally increasing returns," Journal of Environmental Economics and Management, Elsevier, vol. 52(3), pages 675-689, November.
    5. Pinelopi Koujianou Goldberg & Amit Kumar Khandelwal & Nina Pavcnik & Petia Topalova, 2010. "Imported Intermediate Inputs and Domestic Product Growth: Evidence from India," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 125(4), pages 1727-1767.
    6. J. Peter Neary, 2009. "Putting the “New” into New Trade Theory: Paul Krugman's Nobel Memorial Prize in Economics," Scandinavian Journal of Economics, Wiley Blackwell, vol. 111(2), pages 217-250, June.
    7. Ziesemer, Thomas, 1990. "Optimal Subsidization and Structural Change under Monopolistic Competition with Technical Progress a la Ethier," MPRA Paper 64500, University Library of Munich, Germany.
    8. MARTINS, Ana Paula, 2015. "Increasing Returns And Endogenous Growth: Market Size And Taste For Variety," Academica Science Journal, Economica Series, Dimitrie Cantemir University, Faculty of Economical Science, vol. 1(5), pages 3-33, June.
    9. Ndubuisi, Gideon & Mensah, Emmanuel & Owusu, Solomon, 2020. "Export Variety and Imported Intermediate Inputs: Industry-Level Evidence from Africa," MPRA Paper 106008, University Library of Munich, Germany.
    10. James R. Markusen, 1990. "First Mover Advantages, Blockaded Entry, And the Economics of Uneven Development," NBER Working Papers 3284, National Bureau of Economic Research, Inc.
    11. Pinelopi Koujianou Goldberg & Amit Kumar Khandelwal & Nina Pavcnik & Petia Topalova, 2010. "Imported Intermediate Inputs and Domestic Product Growth: Evidence from India," The Quarterly Journal of Economics, Oxford University Press, vol. 125(4), pages 1727-1767.
    12. Eckel, Carsten, 2003. "Does globalization lead to specialization?," University of Göttingen Working Papers in Economics 20, University of Goettingen, Department of Economics.
    13. repec:pri:cepsud:192goldberg is not listed on IDEAS
    14. Ulltveit-Moe, Karen Helene & Moxnes, Andreas & Bøler, Esther Ann, 2012. "Technological Change, Trade in Intermediates and the Joint Impact on Productivity," CEPR Discussion Papers 8884, C.E.P.R. Discussion Papers.
    15. repec:got:cegedp:20 is not listed on IDEAS
    16. William B. Beyers & David P. Lindahl, 1998. "Services and the new economic landscape," ERSA conference papers ersa98p391, European Regional Science Association.
    17. van de Klundert, T.C.M.J. & Smulders, J.A., 1991. "Reconstructing growth theory : A survey," Other publications TiSEM 19355c51-17eb-4d5d-aa66-b, Tilburg University, School of Economics and Management.
    18. Llanes Gastón & Trento Stefano, 2011. "Anticommons and Optimal Patent Policy in a Model of Sequential Innovation," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 11(1), pages 1-27, August.
    19. Yi-Ling Cheng & Juin-Jen Chang, 2017. "The Quality of Intermediate Goods: Growth and Welfare Implications," The Economic Record, The Economic Society of Australia, vol. 93(302), pages 434-447, September.
    20. Suga, Nobuhito, 2007. "A monopolistic-competition model of international trade with external economies of scale," The North American Journal of Economics and Finance, Elsevier, vol. 18(1), pages 77-91, February.
    21. Patricia Augier & Olivier Cadot & Marion Dovis, 2013. "Imports and TFP at the firm level: the role of absorptive capacity," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 46(3), pages 956-981, August.
    22. Cheng-te Lee & Chen Fang & Kuo-hsing Kuo, 2014. "Common Market and Equilibrium Growth," Economics Bulletin, AccessEcon, vol. 34(1), pages 480-493.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:sae:urbstu:v:38:y:2001:i:3:p:563-591. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: SAGE Publications (email available below). General contact details of provider: http://www.gla.ac.uk/departments/urbanstudiesjournal .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.