1. Role of Services in Regional Economy Growth.
- Author
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KAY, DAVID L., PRATT, JAMES E., and WARNER, MILDRED E.
- Subjects
DEVELOPMENT economics ,ECONOMIC development ,EXPORTS ,REGIONAL economics ,SERVICE industries ,ECONOMICS ,ECONOMIC sectors ,ECONOMIC expansion - Abstract
Although the final demand-oriented export base paradigm dominates economic development theory and practice, its usefulness is increasingly questioned because of the changing structure of modern economies, empirical critiques of export-led growth strategies, and studies that decompose the actual sources of growth. The importance of service industries, especially local services and their role in inducing economic growth, requires a measure that includes both forward and backward linkages to empirically account for the complete role of an industry. Using data for New York State, we demonstrate how the input-output-based method of hypothetical extraction can more appropriately measure the economic linkage of a broader range of contemporary economic sectors (including services) than traditional, final demand-induced, backward-linkage multipliers. Our analysis provides empirical support for greater economic development attention to be directed toward local services. [ABSTRACT FROM AUTHOR]
- Published
- 2007
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