The interaction between knowledge-intensive business services and urban economy

Seungil Yum ()
Additional contact information
Seungil Yum: University of Florida

The Annals of Regional Science, 2019, vol. 63, issue 1, No 3, 53-83

Abstract: Abstract While the importance of knowledge-intensive business services (KIBS) has been rapidly growing in our knowledge-based era, most studies have analyzed KIBS in European countries. This study highlights the spatial patterns and economic impacts of KIBS in the US Metropolitan Statistical Areas (MSAs) by employing a new cluster quotient (CQ) index and Seemingly Unrelated Regression model. First, this study finds that Washington, DC, plays an important role in KIBS clusters and the CQ index would be a better index than the location quotient (LQ) index for measuring the magnitude of clusters given that LQ cannot consider the agglomeration of industries into its index. Second, this study highlights that KIBS and the GDP positively interact with each other. For example, the GDP shows an elasticity of 0.084 for KIBS, and KIBS exert an impact on the GDP with an elasticity of 0.515. The findings suggest that KIBS can be an economic driver for the US MSAs, and urban practitioners should develop policies for KIBS to promote regional economic growth.

JEL-codes: B41 O21 R11 R15 R58 (search for similar items in EconPapers)
Date: 2019
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
http://link.springer.com/10.1007/s00168-019-00920-3 Abstract (text/html)
Access to the full text of the articles in this series is restricted.

Related works:
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: https://EconPapers.repec.org/RePEc:spr:anresc:v:63:y:2019:i:1:d:10.1007_s00168-019-00920-3

Ordering information: This journal article can be ordered from
http://link.springer.com/journal/168

DOI: 10.1007/s00168-019-00920-3

Access Statistics for this article

The Annals of Regional Science is currently edited by Martin Andersson, E. Kim and Janet E. Kohlhase

More articles in The Annals of Regional Science from Springer, Western Regional Science Association Contact information at EDIRC.
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().