Template-type: ReDif-Paper 1.0
Author-Name: Brenner, T.
Author-Name: Capasso, M.
Author-workplace-name: Macro, International & Labour Economics
Author-Name: Duschl, M.
Author-Name: Frenken, K.
Author-Name: Treibich, T.G.
Author-workplace-name: Macro, International & Labour Economics
Title: Causal relations between knowledge-intensive business services and regional employment growth
Abstract: 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 the period 1999-2012. Adopting a recently developed technique, we are able to estimate a structural vector autoregressive model in which the causal directions between KIBS and other sectors are examined including various time lags. One main finding holds 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 result confirms the claim that KIBS can play a key role in regional policies. Distinguishing between financial and non-financial KIBS, we find that financial KIBS have a procyclical effect on regional growth underlining the potential de-stabilizing effect of a large financial sector.
Series: GSBE Research Memoranda
Creation-Date: 20150101
Number: 029
File-URL: https://cris.maastrichtuniversity.nl/ws/files/854470/guid-567da6bc-fd02-4173-8cbc-b931b8002e56-ASSET1.0.pdf
File-Format: application/pdf
File-Size: 792274
Handle: Repec:unm:umagsb:2015029
DOI: 10.26481/umagsb.2015029