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Private Services as a Source of Growth?

Author

Listed:
  • Ali-Yrkkö, Jyrki
  • Pajarinen, Mika
  • Rouvinen, Petri

Abstract

There are almost 200,000 enterprises operating in the Finnish service sector, combined. However, not all of the service industries are the same. Some services have become independent of geographical locations, meaning that they can be exported, much like physical products. Other services still require that they are produced and consumed in the same place. Significant differences also exist between the scalability of different services. Since 2007, employment growth has been the fastest in the location-dependent services. The real growth of value added and the increase of productivity, however, have been concentrated in the service industries which do not depend on geography, and where the economies of scale apply the most.

Suggested Citation

  • Ali-Yrkkö, Jyrki & Pajarinen, Mika & Rouvinen, Petri, 2014. "Private Services as a Source of Growth?," ETLA Reports 36, The Research Institute of the Finnish Economy.
    • Handle: RePEc:rif:report:36
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    File URL: http://www.etla.fi/wp-content/uploads/ETLA-Raportit-Reports-36.pdf
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    More about this item

    Keywords

    Service; Growth; Policy; Offshorability; Tradability; Scalability;
    All these keywords.

    JEL classification:

    • L52 - Industrial Organization - - Regulation and Industrial Policy - - - Industrial Policy; Sectoral Planning Methods
    • L80 - Industrial Organization - - Industry Studies: Services - - - General
    • L88 - Industrial Organization - - Industry Studies: Services - - - Government Policy
    • O30 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - General
    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business

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