Economic Growth and Services Sector in Ibero-American Countries (1960-2010)

Author:

Velázquez-Serna José Angel1

Affiliation:

1. Universidad Tecnológica de León

Abstract

The organizations of the service sector have been little studied; despite the fact that they have a great influence on the economic activity of the Latin American countries (in the labor force -mainly). The purpose of this research is to analyze growth in Ibero-American countries (1960-2010) through an econometric model of panel data by means of variables from the services sector. We want to test the hypothesis that the service variables have positive and statistically significant effects on the economical growth. The empirical evidence from the results obtained in this study suggests that two of the variables of the sector (business services and government services) have positive effects on economic growth in these countries. This is explained primarily by the growth of financial intermediation services (income and business activities) and secondly by the growth of government services (public administration and defense, education, health and social work). In general terms, in this study there is statistical evidence that supports the hypothesis of Ghani and Kharas, (2010), who proves that services cause growth in a globalized and technologically developed world. In this sense, Ghani, (2011), also affirms that services be a driver of sustained growth in organizations.

Publisher

ECORFAN

Reference34 articles.

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3. Beyers, W. y Lindahl D. (1996). Explaining the Demand for Producer Services: Is Cost-Driven Externalization the Major Factor? Papers in Regional Science, Vol. 75 (3), pp. 351–374.

4. Bhagwati, J.(1984). Splintering and Disembodiment of Services and Developing Nations. World-Economy, June, 7(2), pp. 133-143.

5. Bhagwati, J. (1987). International trade in services and its relevance for economic development. En O. Giarini (comp.), Emerging Service Economy, Oxford: Pergamon Press.

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