Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/147969
Authors: 
Brenner, Thomas
Capasso, Marco
Duschl, Matthias
Frenken, Koen
Treibich, Tania
Year of Publication: 
2015
Series/Report no.: 
Working Papers on Innovation and Space 04.15
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 nonfinancial KIBS, we find that financial KIBS have a procyclical effect on regional growth underlining the potential de-stabilizing effect of a large financial sector.
Subjects: 
Employment growth
growth spillovers
KIBS
industrial dynamics
financial geography
JEL: 
C53
O33
R10
Document Type: 
Working Paper

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