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Knowledge-intensive business services in transition economies

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  • Vladimír Baláž

Abstract

Knowledge-intensive business services accounted for a rapid growth in transition economies after 1989. The growth in value added outpaced growth in employment, which indicated increasing labour productivity in this sector. Studies based on input--output tables found that development of business services was closely related to development of communication services in advanced EU member countries. The input--output analysis did not confirm this relation for Slovakia and the Czech Republic and found a medium to strong level of correlation for Hungary. Development of a market economy was likely to be a major factor behind development of business services. This assumption was tested on empirical data. The use of communication and business services could be a proxy for introduction of new technologies in production functions. The functions indicated that these industries made a significant contribution to economic growth both in advanced and transition economies. Output elasticity coefficients were quite similar in the Czech Republic, Hungary and Slovakia and the EU member countries.

Suggested Citation

  • Vladimír Baláž, 2004. "Knowledge-intensive business services in transition economies," The Service Industries Journal, Taylor & Francis Journals, vol. 24(4), pages 83-100, July.
    • Handle: RePEc:taf:servic:v:24:y:2004:i:4:p:83-100
    DOI: 10.1080/0264206042000275208
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    References listed on IDEAS

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    1. Johan Hauknes, "undated". "Services in Innovation – Innovation in Services," STEP Report series 199813, The STEP Group, Studies in technology, innovation and economic policy.
    2. Cristiano Antonelli, 1998. "Localized technological change, new information technology and the knowledge-based economy: The European evidence," Journal of Evolutionary Economics, Springer, vol. 8(2), pages 177-198.
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    Cited by:

    1. Joanna Wyszkowska-Kuna, 2017. "Usługi biznesowe oparte na wiedzy a innowacyjność przedsiębiorstw przetwórczych w krajach Unii Europejskiej," Gospodarka Narodowa. The Polish Journal of Economics, Warsaw School of Economics, issue 4, pages 99-120.
    2. Wyszkowska-Kuna Joanna, 2016. "Competitiveness of the New European Union Member States in International Trade in Knowledge-intensive Business Services," Comparative Economic Research, Sciendo, vol. 19(3), pages 5-26, September.

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