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Knowledge intensive business services and long term growth

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  • Desmarchelier, Benoît
  • Djellal, Faridah
  • Gallouj, Faïz

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. Nevertheless, material capital accumulation still appears as a significant factor of economic growth.

Suggested Citation

  • Desmarchelier, Benoît & Djellal, Faridah & Gallouj, Faïz, 2013. "Knowledge intensive business services and long term growth," Structural Change and Economic Dynamics, Elsevier, vol. 25(C), pages 188-205.
    • Handle: RePEc:eee:streco:v:25:y:2013:i:c:p:188-205
    DOI: 10.1016/j.strueco.2012.07.003
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    More about this item

    Keywords

    Economic growth; Business services; Structural change;
    All these keywords.

    JEL classification:

    • O14 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology
    • O41 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - One, Two, and Multisector Growth Models

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