Linking local services to global manufactures

Björn Thor Arnarson, Joakim Gullstrand

Research output: Contribution to journalArticlepeer-review

Abstract

We assess how global shocks propagate from global manufacturing firms to local service providers through a spatial variation in export-driven service demand. We show that a 1% increase in a localised measure of exporting increases sales of service firms by around 0.08%. We also show that this link is local as the effect fades away after just 20 km, that it is more pronounced with larger and foreign-owned service firms, and that the impact extends beyond sales as it also increases the employment as well as productivity in local service plants and it also make them less likely to move.
Original languageEnglish
Pages (from-to)3-34
JournalScandinavian Journal of Economics
Volume124
Issue number1
DOIs
Publication statusPublished - 2022

Subject classification (UKÄ)

  • Economics

Free keywords

  • Spillovers
  • services
  • manufacturing exports
  • propagation
  • input-output linkages

Fingerprint

Dive into the research topics of 'Linking local services to global manufactures'. Together they form a unique fingerprint.

Cite this