AGGLOMERATION ECONOMIES AND PERFORMANCE IN KNOWLEDGE-INTENSIVE BUSINESS SERVICES

Cui Zhang ()
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Cui Zhang: School of Economics, Jinan University, Guangzhou 510632, P. R. China

The Singapore Economic Review (SER), 2020, vol. 65, issue 02, 457-469

Abstract: Most studies on the relationship between agglomeration economies and economic performance have focussed on regions in general or manufacturing. Very few papers have considered the impacts of agglomeration economies on the economic performance of knowledge-intensive business services (KIBS) firms. We propose a theoretical framework based on the characteristics of KIBS to study the precise channels through which KIBS firms benefit from specialization externalities and diversity externalities. The empirical evidence based on the software and IT services industry in China, a very dynamic branch of KIBS, shows that firms benefit from service diversity externalities but not specialization externalities, consistent with the idea of “nursery cities”.

Keywords: Agglomeration externalities; knowledge-intensive business services; firm performance (search for similar items in EconPapers)
Date: 2020
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Citations: View citations in EconPapers (2)

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DOI: 10.1142/S0217590819500048

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