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Business Services as a Production Factor

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  • Ina Drejer

Abstract

Based on the assumption that business services are influential production factors, an empirical analysis of the relation between business service inputs and production output in user sectors is carried out. Danish data from 52 manufacturing and service sectors covering the period 1970-95 are applied in the analysis. A sectoral dimension is introduced by dividing the 52 sectors into eight sectoral groupings and then allowing the slopes of the different variables included in the model to vary between the eight groups. The empirical analysis offers some support to the assumption that business services can have an effect comparable to traditional production factors, although this only applies to service sectors, and, partly, to low-knowledge manufacturing.

Suggested Citation

  • Ina Drejer, 2002. "Business Services as a Production Factor," Economic Systems Research, Taylor & Francis Journals, vol. 14(4), pages 389-405, December.
    • Handle: RePEc:taf:ecsysr:v:14:y:2002:i:4:p:389-405
    DOI: 10.1080/0953531022000024851
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    Cited by:

    1. Marco Capasso & Koen Frenken & Tania Treibich, 2017. "Sectoral co-movements of employment growth at regional level," Economic Systems Research, Taylor & Francis Journals, vol. 29(1), pages 82-104, January.
    2. Evangelista, Rinaldo & Lucchese, Matteo & Meliciani, Valentina, 2013. "Business services, innovation and sectoral growth," Structural Change and Economic Dynamics, Elsevier, vol. 25(C), pages 119-132.
    3. Consoli, Davide & Patrucco, Pierpaolo, 2004. "The Knowledge Trade-Off: Circulation, Growth and the Role of Knowledge-Intensive Business Services in Urban Innovation Systems," Department of Economics and Statistics Cognetti de Martiis LEI & BRICK - Laboratory of Economics of Innovation "Franco Momigliano", Bureau of Research in Innovation, Complexity and Knowledge, Collegio 200402, University of Turin.
    4. Uwitonze, Eric & Heshmati, Almas, 2016. "Service Sector Development and its Determinants in Rwanda," IZA Discussion Papers 10117, Institute of Labor Economics (IZA).
    5. Martin Falk & Fei Peng, 2013. "The increasing service intensity of European manufacturing," The Service Industries Journal, Taylor & Francis Journals, vol. 33(15-16), pages 1686-1706, December.
    6. Matthias Figo & Peter Mayerhofer, 2015. "Strukturwandel und regionales Wachstum - wissensintensive Unternehmensdienste als Wachstumsmotor?," Working Paper Reihe der AK Wien - Materialien zu Wirtschaft und Gesellschaft 145, Kammer für Arbeiter und Angestellte für Wien, Abteilung Wirtschaftswissenschaft und Statistik.
    7. Peter Mayerhofer & Matthias Firgo, 2015. "Wissensintensive Unternehmensdienste, Wissens-Spillovers und regionales Wachstum. Teilprojekt 2: Strukturwandel und regionales Wachstum – Wissensintensive Unternehmensdienste als "Wachstumsmotor&," WIFO Studies, WIFO, number 58503, February.
    8. Achy, Lahcen & Basri, Amine, 2009. "Do Business Services matter for Innovation, Productivity, and Exports? Morocco’s Manufacturing Sector Story," MPRA Paper 112010, University Library of Munich, Germany, revised Feb 2022.
    9. Joanna Wyszkowska-Kuna, 2016. "Financial Services Input as a Source of Economic Growth in the European Union Countries," FindEcon Chapters: Forecasting Financial Markets and Economic Decision-Making, in: Magdalena Osińska (ed.), Statistical Review, vol. 63, 2016, 3, edition 1, volume 63, chapter 3, pages 289-308, University of Lodz.

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