Agglomeration economies, forward linkages and regional specialisation in business services in the EU-27

Author/s Valentina Meliciani, Maria Savona
Publishing Year 2012 Issue 2012/3 Language Italian
Pages 23 P. 78-100 File size 790 KB
DOI 10.3280/REST2012-003005
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This work explains sectoral specialisation in business services (BS) across the EU-27 regions as determined by agglomeration economies. Beside traditional sources of agglomeration economies such as localisation and urbanisation externalities, we include the region-specific structure of Hirschmann forward linkages and knowledge density. Further, we account for the presence of these factors in neighbouring regions. Methods and Results The empirical analysis draws upon the REGIO panel database over the period 1999-2003. By estimating a Spatial Durbin Model, we find that urbanisation economies and Hirschmann forward linkages - both with manufacturing and especially other services - largely explain specialisation in BS. The knowledge endowment of the region - measured by the human capital specialised in Science and Technology - is also a significant determinant of BS regional concentration. Finally we find significant spatial effects in affecting regional specialisation in business services. Conclusions The econometric results support the argument of the literature on agglomeration economies showing that Hirschmann forward linkages (with both manufacturing and service sectors) play a crucial role in the localisation of business services.

Keywords: Business services, regional specialisation, agglomeration economies, servicesmanufacturing linkages, human capital, spatial Durbin model

Jel codes: R12, L80, O3

Valentina Meliciani, Maria Savona, Economie di agglomerazione, legami a valle e specializzazione regionale nei servizi alle imprese nell’Unione Europea a 27 in "RIVISTA DI ECONOMIA E STATISTICA DEL TERRITORIO" 3/2012, pp 78-100, DOI: 10.3280/REST2012-003005