2013
DOI: 10.1016/j.strueco.2012.07.003
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Knowledge intensive business services and long term growth

Abstract: The goal of this paper is to (re)assess the relationship between knowledge intensive business services (KIBS) and the economic growth. Taking into account various conflicting relationships between KIBS and growth, we build a multi agent-based system involving industrial firms, consumer-services firms, consumers, KIBS firms and a banking system. Our main result is that KIBS can be regarded as an engine for the economic growth and that they operate as a substitute for the material capital accumulation. Neverthel… Show more

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Cited by 60 publications
(30 citation statements)
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References 28 publications
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“…The role of the internet and web-based services and the growth in high-technology services indicate that knowledge-intensive business services are taking a more active economic role (Howells 2001; Desmarchelier et al 2013). Within the knowledge-intensive business services, the banking sector contributes increasingly to the growth of the economy and economic activity (Jayawardhena and Foley 2000; Das 2013; Wang and Tsai 2014).…”
Section: Introductionmentioning
confidence: 99%
“…The role of the internet and web-based services and the growth in high-technology services indicate that knowledge-intensive business services are taking a more active economic role (Howells 2001; Desmarchelier et al 2013). Within the knowledge-intensive business services, the banking sector contributes increasingly to the growth of the economy and economic activity (Jayawardhena and Foley 2000; Das 2013; Wang and Tsai 2014).…”
Section: Introductionmentioning
confidence: 99%
“…If we consider that business services have clients in many other sectors, then any small increase in their productivity indirectly fosters productivity growth of the economy as a whole. In a similar line of thought, Desmarchelier at al. (2013) build an agent-based model of economic growth in which knowledge intensive business services (KIBS thereafter) foster the accumulation of human capital and the growth of labor productivity in all other sectors of the economy.…”
Section: The Unbalanced Growth Model and Its Limitationsmentioning
confidence: 63%
“…Simulation results show that the model is able to deliver self-sustaining patterns of growth characterised by the presence of endogenous business cycles. Desmarchelier et al [13] (re)assess the relationship between knowledge intensive business services (KIBS) and the economic growth with the help of a multi agent-based system involving industrial firms, consumer-services firms, consumers, KIBS firms and a banking system. This model helps them to conclude that that KIBS can be regarded as an engine for the economic growth and that they operate as a substitute for the material capital accumulation.…”
Section: Literature Reviewmentioning
confidence: 99%