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

Manuel Araya (), Krisztina Horváth () and Juan Carlos Leiva ()
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Manuel Araya: Costa Rica Institute of Technology (ITCR), School of Business, Cartago Campus
Krisztina Horváth: Regional Innovation and Entrepreneurship Research Center (RIERC), Faculty of Business and Economics, University of Pécs, Hungary.
Juan Carlos Leiva: Costa Rica Institute of Technology (ITCR), School of Business, Cartago Campus.

INVESTIGACIONES REGIONALES - Journal of REGIONAL RESEARCH, 2020, issue 48, 19-35

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 the 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.

Keywords: Territorial servitization; county competitiveness; industry configuration; Costa Rica. (search for similar items in EconPapers)
JEL-codes: L26 O14 O54 R58 (search for similar items in EconPapers)
Date: 2020
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Persistent link: https://EconPapers.repec.org/RePEc:ris:invreg:0445

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