xmlui.ArtifactBrowser.SimpleSearch.filter.source:Scientific papers of the University of Pardubice. Series D, Faculty of Economics and Administration. 42/2018
ISSN:1211-555X (Print)
Abstract:
The paper investigates the impact of agglomeration economies on the regional
employment growth in the knowledge intensive services (KIS) in Slovakia over the
period 1998 to 2014 by estimating spatial econometric models. Assuming that
knowledge spillovers and externalities are stronger between industries with shared
knowledge bases and complementarities, we analyse the role of different forms of
sectoral variety at the district level in Slovakia. Results indicate that localization
economies has a generally negative impact on the employment growth in the KIS sector,
however the results show a strong evidence of the beneficial effect of related variety,
while no role is played by unrelated variety. When looking at knowledge spillover
between KIS and manufacturing, the KIS industry is affected by related variety in
manufacturing industry, while no evidence of externalities is found from the tertiary
sectors to manufacturing. The results question the merits of interventions promoting
regional specialisation and emphasise that diversity into the related industries should
be one of the policy issue areas.