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Porträttfoto

Joakim Gullstrand

Dean, Professor

Porträttfoto

Linking local services to global manufactures

Author

  • Björn Thor Arnarson
  • Joakim Gullstrand

Summary, in English

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.

Department/s

  • Department of Economics

Publishing year

2022

Language

English

Pages

3-34

Publication/Series

Scandinavian Journal of Economics

Volume

124

Issue

1

Document type

Journal article

Publisher

Wiley-Blackwell

Topic

  • Economics

Keywords

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

Status

Published

ISBN/ISSN/Other

  • ISSN: 1467-9442