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The role of county competitiveness and manufacturing activity on the development of business service sectors: A precursor to territorial servitization

Year: 2020

Type: article

Abstract: This study evaluates how regional competitiveness and relevant properties of the manufacturing industry—i.e., size and rate of manufacturing firms—impact changes in the rate of business service firms. By employing fixed-effects regression models on a sample of 81 Costa Rican counties during 2010-2016, the findings reveal that the quality of the local environment positively affects business service specialization. Besides, manufacturing businesses contribute to increase in rate of business services; however, this effect is only significant in counties with a greater manufacturing base, that is, in counties with a critical mass of manufacturers, in terms of number of manufacturers.

Source: Investigaciones Regionales - Journal of Regional Research

DOI: 10.38191/iirr-jorr.20.018

Authors: Krisztina Horváth, Manuel Araya, Juan Carlos Leiva

Institutions: Instituto Tecnológico de Costa Rica, Asociación Española de Ciencia Regional (AECR), University of Pecs

Language: English

Topic: Agglomeration and Urban Systems

Subfield: Economics and Econometrics

Field: Economics, Econometrics and Finance

Domain: Social Sciences

SDGs: Decent work and economic growth, Industry, innovation and infrastructure

Open Access status: diamond

Funders: European Commission, Magyarország Kormánya, European Social Fund