Economics at your fingertips  

Growth of business services: A supply-side hypothesis

Satya P. Das and Anuradha Saha

Canadian Journal of Economics, 2015, vol. 48, issue 1, 83-109

Abstract: This paper aims to explain why and how the service sector may grow faster than manufacturing. It develops a two-sector, closed-economy model, having a manufacturing sector and a service sector. Accumulation of human capital serves as the basis of growth. The analysis focuses on business services, while household services are also considered. It is argued that differences in returns to scale between the two sectors and employment frictions in manufacturing explain why the growth rate of the service sector may be higher. The model also features that within the service sector the business services sub-sector may grow faster than household services.

JEL-codes: L80 (search for similar items in EconPapers)
Date: 2015
References: Add references at CitEc
Citations: View citations in EconPapers (3) Track citations by RSS feed

Downloads: (external link) (text/html)
access restricted to subscribers

Related works:
Journal Article: Growth of business services: A supply‐side hypothesis (2015) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link:

Ordering information: This journal article can be ordered from
https://www.economic ... ionen/membership.php

Access Statistics for this article

Canadian Journal of Economics is currently edited by Katherine Cuff

More articles in Canadian Journal of Economics from Canadian Economics Association Canadian Economics Association Prof. Werrner Antweiler, Treasurer UBC Sauder School of Business 2053 Main Mall Vancouver, BC, V6T 1Z2. Contact information at EDIRC.
Bibliographic data for series maintained by Prof. Werner Antweiler ().

Page updated 2023-08-09
Handle: RePEc:cje:issued:v:48:y:2015:i:1:p:83-109