Causal relations between knowledge-intensive business services and regional employment growth

Causal relations between knowledge-intensive business services and regional employment growth. Regional Studies. This paper studies the causal relations between regional employment growth in knowledge-intensive business services (KIBS) and overall regional employment growth using German labour-marke...

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Bibliographic Details
Published inRegional studies Vol. 52; no. 2; pp. 172 - 183
Main Authors Brenner, Thomas, Capasso, Marco, Duschl, Matthias, Frenken, Koen, Treibich, Tania
Format Journal Article
LanguageEnglish
Published Cambridge Routledge 01.02.2018
Taylor & Francis Ltd
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Summary:Causal relations between knowledge-intensive business services and regional employment growth. Regional Studies. This paper studies the causal relations between regional employment growth in knowledge-intensive business services (KIBS) and overall regional employment growth using German labour-market data for 1999-2012. Adopting a recently developed technique, it uses a structural vector autoregressive model in which the causal directions between KIBS and other sectors are examined including various time lags. Results show that although regional growth has a negative short-term effect on KIBS, KIBS growth has a long-term positive effect on the whole regional economy. This confirms the claim that KIBS can play a key role in regional policies.
ISSN:0034-3404
1360-0591
DOI:10.1080/00343404.2016.1265104