Business and financial services: new engine of economic growth?

Research output: Working paper

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Does unbalanced sectoral productivity growth inevitably lead to continuous shift of resources to the less productive sectors and stagnation in aggregate productivity? This paper attempts to integrate the traditional stagnationist and the modern optimist arguments within a numerical simulation framework. The simulation framework consists of an applied general equilibrium multi-sectoral growth model for a small open regional economy that incorporates unbalanced sectoral growth and the growing role of business and financial services as intermediate service providers. The simulation results lend support to the stagnationist view in the long run but reveal some unconventional comparative-static properties in the short- to medium run.
Original languageEnglish
PublisherUniversity of Hertfordshire
Publication statusPublished - 2008

Publication series

NameBusiness School Working Paper
PublisherUniversity of Hertfordshire


  • unbalanced growth
  • intermediate linkages
  • resource shift
  • multi-sector growth model


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