Advanced business services in the global economy and the Visegrád Group economies

Klimek, Artur

doi:10.4467/23539496ib.18.029.9402

“…Poland and Slovakia increased their business service exports while Czech Republic and Hungary reduced the import content of business services (Melikhova, Bazo, Holubcova, & Camacho, 2015;Klimek, 2018). South Caucasia also experienced an expansion of business service employment, but its share is still small.…”

Section: Shift Share Analysismentioning

confidence: 99%

Untitled

2022

CES

0

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This paper investigates the effect of the change in the economic structure on economic growth in Visegrad and South Caucasia. The Shift Share Analysis (SSA) method measures the direct effects of structural change on productivity growth.Fully Modified OLS (FMOLS) regressions evaluate the indirect effect of the advanced sectors on economic growth. SSA finds that within sector productivity is the main driver of economic growth in both regions and the manufacturing sector is the engine of within sector productivity growth in Visegrad countries.Expansion of the modern business services sector produced a positive reallocation effect in all countries but the lack of growth dynamism in the productivity of this sector undermined the positive reallocation effect in Hungary and Slovakia.The FMOLS regressions show that manufacturing export has a positive effect

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“…Poland and Slovakia increased their business service exports while Czech Republic and Hungary reduced the import content of business services (Melikhova, Bazo, Holubcova, & Camacho, 2015;Klimek, 2018). South Caucasia also experienced an expansion of business service employment, but its share is still small.…”

Section: Shift Share Analysismentioning

confidence: 99%

Structural Change and Economic Growth in Visegrad and South Caucasian Countries

Ahmadov¹

2022

CES

3

0

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This paper investigates the effect of the change in the economic structure on economic growth in Visegrad and South Caucasia. The Shift Share Analysis (SSA) method measures the direct effects of structural change on productivity growth. Fully Modified OLS (FMOLS) regressions evaluate the indirect effect of the advanced sectors on economic growth. SSA finds that within sector productivity is the main driver of economic growth in both regions and the manufacturing sector is the engine of within sector productivity growth in Visegrad countries. Expansion of the modern business services sector produced a positive reallocation effect in all countries but the lack of growth dynamism in the productivity of this sector undermined the positive reallocation effect in Hungary and Slovakia. The FMOLS regressions show that manufacturing export has a positive effect on economic growth while business service production does not. The general structure of Visegrad economies is similar to advanced countries and they can achieve further development by upgrading their production within advanced sectors while South Caucasian countries can develop their economies by expanding the high-value sectors and channeling the excess labor in low-value sectors to relatively higher value activities. Both strategies require investment in human capital and upgrading their domestic capacity.

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“…It is well known, that the knowledge-intensive business services (KIBS) as a small proportion of all services, is significant in terms of economic benefits and as the key part of the growth in value added, employment and labour productivity [1]. The recognition of the relevance of KIBS firms is becoming especially acute in the European Union [2] and even more important for many emerging economies [3,4]. The empirical analysis of the Visegrad countries conducted by [4] revealed, that despite of just a few years of development of advanced services in Central and Eastern Europe, they already play an important role as advance business providers, however many countries do not reveal much data (out of the V4 countries, only Hungary and Poland provide data such as FDI).…”

Section: Introductionmentioning

confidence: 99%

Sustainable marketing strategy under globalization: a comparison between p-KIBS and t-KIBS sectors

Bumberová

¹

,

Kaňovská

²

2020

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The recognition of the relevance of knowledge-intensive business services (KIBS) is becoming especially acute in the European Union and even more important for many emerging economies. The objective of this paper is to explore what are the differences in marketing strategy to sustain the competitiveness of KIBS in the local and global markets in the last five years. In addition, this research compares what are the differences between the technology-based (t-KIBS) and professional-based (p-KIBS) business services. The empirical evidence is based on quantitative and firm-level data gathered through an email questionnaire which yielded 128 qualified responses from the small enterprises in Czech Republic. The analysis is based on descriptive statistics and non-parametric tests to compare the differences between the two groups of enterprises. The empirical evidence displays a diversity between t-KIBS and p-KIBS in usage of marketing policy such as pricing policy, brand or company presentation as well as the markets they operate on in the last five years. The research contributions of this study are twofold. First, the results have implications for managers involved in business development of service industry and second, results could be useful for government efforts to support the development (export) activities of KIBS as a heterogeneous category.

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Advanced business services in the global economy and the Visegrád Group economies

Cited by 4 publications

References 7 publications

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Structural Change and Economic Growth in Visegrad and South Caucasian Countries

Sustainable marketing strategy under globalization: a comparison between p-KIBS and t-KIBS sectors

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