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Convergence in the UK Service Sector: Firm Level Evidence, 1988-1998

11 Pages Posted: 29 Dec 2005  

Sourafel Girma

Nottingham University Business School

Richard Kneller

University of Nottingham

Abstract

Bernard and Jones (1996) have previously argued that similarity in the technologies used by firms in the service sector helps to explain evidence of absolute convergence at the cross-country level. This paper searches for convergence at the firm level using data for the UK service sector over the period 1988-1998. Initial mixed support for this view is partly explained by strong business cycle effects in the data. Upon closer examination we find evidence that convergence was more likely in industries that had high levels of technology investment, greater exposure to new technologies and high levels of absorptive capacity.

Suggested Citation

Girma, Sourafel and Kneller, Richard, Convergence in the UK Service Sector: Firm Level Evidence, 1988-1998. Scottish Journal of Political Economy, Vol. 52, No. 5, pp. 736-746, November 2005. Available at SSRN: https://ssrn.com/abstract=857824 or http://dx.doi.org/10.1111/j.1467-9485.2005.00364.x

Sourafel Girma (Contact Author)

Nottingham University Business School ( email )

Jubilee Campus
Nottingham, NG8 1BB
United Kingdom
+44 0 115 8466656 (Phone)

HOME PAGE: http://www.nottingham.ac.uk/~lizsmg/

Richard Kneller

University of Nottingham ( email )

University Park
Nottingham, NG8 1BB
United Kingdom

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