Joanna Wyszkowska-Kuna

(English) PDF


The aim of this paper is to study and compare the importance of intermediate demand for financial services for the growth of production in the European Union countries. In the study the methodology introduced by Jorgenson et al. (1987) is used. This assumes that changes in the production (in real terms) result from changes in intermediate inputs of raw and manufacturing materials and services, as well as in factor inputs (labour and capital) and in total factor productivity. The advantage of this method is the ability to calculate the contributions of different components of intermediate inputs (including service inputs – total or with respect to particular service categories) to production growth in the whole economy and in individual industries. The study is carried out with respect to financial services, but their contribution to economic growth is compared with the contribution of knowledge-intensive business services that have been already recognized as affecting economic and productivity growth. The data used in the study come from the World Input-Output Database. The analysed period covers the years 1995–2009, owing to the availability of relevant data.


financial services, economic growth, the decomposition of economic growth, European Union


Antonelli C., (1998), Localized Technological Change, New Information Technology and the Knowledgebased Economy: the European Evidence, Journal of Evolutionary Economics, 8 (2), 177–198.

Antonelli C., (2000), New Information Technology and Localized Technological Change in the Knowledge Based Economy, in: Boden M., Miles I., (eds.), Services and the Knowledge-based Economy, Continuum, London, 170–191.

Baker D., (2007), The Impact of Business-services Use on Client Industries: Evidence from Input Output Data, in: Rubalcaba L., Kox H., (eds.), Business Services in European Economic Growth, Palgrave MacMillan, New York, 97–115.

Baláž V., (2003), Knowledge Intensive Business Services in a Transition Economy, Ekonomický časopis, 51 (4), 475–488.

Baláž V., (2004), Patterns of Intermediate Consumption and Productivity in the Knowledge Intensive Services in Transition Economies, Ekonomický časopis, 52 (3), 298–314.

Baumol W. J., (1967), Macroeconomics of Unbalanced Growth: the Anatomy of Urban Crisis, The American Economic Review, 57 (3), 415–426.

Baumol W. J., Blackman S. A. B., Wolff E. N., (1989), Productivity and American Leadership: The Long View, MIT Press, Cambridge.

Bayar Y., (2014), Financial Development and Economic Growth in Emerging Asian Countries, Asian Social Science, 10 (9), 8–17.

Blomeyer & Sanz, (2013), European Initiatives on Eliminating Tax Havens and Offshore Financial Transactions and the Impact of these Constructions on the Union’s own Resources and Budget, European Union, Brussels,, (31.05.2016).

Browning H., Singelmann J., (1978), The Transformation of the U. S. Labor Force: The Interaction of Industry and Occupation, Politics and Society, 8 (3–4), 481–509.

Cagno di D., Meliciani V., (2005), Do Inter-sectoral Flows of Services Matter for Productivity Growth? An Input/Output Analysis of OECD Countries, Economics of Innovation and New Technology, 14 (3), 149–171.

Camacho J. A., Rodriguez M., (2007), Integration and Diffusion of KIS for Industry Performance, in: Rubalcaba L., Kox H., (eds.), Business Services in European Economic Growth, Palgrave MacMillan, New York, 128–143.

Caporale G. M., Rault C., Sova A. D., Sova R., (2014) Financial Development and its Effects on Economic Growth: A Dynamic Analysis, in: Arouri M., Boubaker S., Nguyen D. K., Emerging Markets and the Global Economy: A Handbook, Academic Press, Oxford (UK), Walthman (USA), San Diego (USA), 811–824, Science Direct, (15.05.2016).

Caporale G. M., Rault C., Sova A. D., Sova R., (2015), Financial Development and Economic Growth: Evidence from 10 New European Union Members, International Journal of Finance and Economics, 20 (1), 48–60.

Desai M. A., Foley C. F., Hines J. R., (2004), Economic Effects of Regional Tax Havens, NBER Working Paper Series, 10806,, (31.05.2016).

Desmarchelier B., Djellal F., Gallouj F., (2013), Knowledge Intensive Business Services and Long Term Growth, Structural Change and Economic Dynamics, 25 (C), 188–205.

Drejer I., (2002), Business Services as a Production Factor, Paper presented at the DRUID Conference on “Industrial Dynamics of the New and Old Economy – Who is Embracing Whom?”, Copenhagen-Elsinore,, (10.11.2013).

Erumban A. A., Gouma R., de Vries G., de Vries K., Timmer M., (2012), WIOD Socio-Economic Accounts (SEA): Sources and Methods,, (13.07.2016).

Fisher I., (1933), The Debt-Deflation Theory of Great Depressions, Econometrica, 1(4), 337–357.

Greenfield H. I., (1966), Manpower and the Growth of Produces Services, Columbia University Press, New York.

Jorgenson D. W., Griliches Z., (1967), The Explanation of Productivity Change, The Review of Economic Studies, 34 (3), 249–283.

Jorgenson D., Gollop F. M., Fraumeni B., (1987), Productivity and U.S. Economic Growth, Harvard University Press, Cambridge, MA.

Kasprzak-Czelej A., (2010), Wpływ rozwoju system finansowego na wzrost gospodarczy, Annales Universitatis Mariae Curie-Skłodowska, Lublin, XLIV(2), 17–30,, (10.05.2016).

Katsoulacos Y., Tsounis N., (2000), Knowledge-intensive Business Services and Productivity Growth: the Greek Evidence, in: Boden M., Miles I., Services and the Knowledge-based Economy, Continuum, London-New York, 192–208.

Kouki I., (2013), Financial Development and Economic Growth in the North African Region, African Development Review, 25 (4), 551–562.

Krishnan K. P., (2011), Financial Development in Emerging Markets: The Indian Experience, in: Kawai M., Prasad E. S., (eds.), Financial Market Regulation and Reforms in Emerging Markets, Asian Development Banks, Tokyo and Brookings Institution Press, Washington, 226–262.

Levin M., (2002), The Prospects for Offshore Financial Centres in Europe, Centre for European Policy Studies,, (10.05.2016).

Levine R., (2005), Finance and Growth: Theory and Evidence, in: Aghion P., Durlauf S. N., (eds.), Handbook of Economic Growth, ELSEVIER, Amsterdam, 865–934,, (10.05.2016).

Lucas R. E., (1988), On the Mechanics of Economic Development, Journal of Monetary Economics, 22 (1), 3–42.

Mainelli M., Yeandle M., (2007, 2009), The Global Financial Centres Index, Z/Yen Group for the City of London,, (15.05.2016).

Masoud N., Hardaker D., (2012), The Impact of Financial Development on Economic Growth: Empirical Analysis of Emerging Market Countries, Studies in Economics and Finance, 29 (3), 148–173.

Miller M. H., (1998), Financial Markets and Economic Growth, Journal of Applied Corporate Finance, 11 (3), 8–15.

Minsky H. P., (1982), Can “It” Happen Again? Essays on Instability and Finance, Hyman P. Minsky Archive, Paper 314,, (2.08.2016).

Minsky H. P., (1990), Schumpeter: Finance and Evolution, in: Heertje A., Perlman M., (eds.), Evolving Technology and Market Structure: Studies in Schumpeterian Economics, the University of Michigan Press, Ann Arbor, MI, 51–76.

Ncube M., (2007), Financial Services and Economic Development in Africa, Journal of African Economies, 16 (1), 13–57.

O’Mahony M., Timmer M. P., (2009), Output, Input and Productivity Measures at the Industry Level: the EU KLEMS Database, Economic Journal, 119 (538), 374–403.

Oulton N., (2001), Must the Growth Rate Decline?, Oxford Economic Papers, 53 (4), 605–627.

Parietti M., (2016), The Top 10 European Tax Havens, 4.04.2016, Investopedia,, (1.06.2016).

Robinson J., (1952), The Generalization of the General Theory, in: The Rate of Interest and Other Essays, MacMillan, London.

Schumpeter J. A., (1912, 1934), The Theory of Economic Development (translated by R. Opie), Harvard University Press, Cambridge, MA.

Sunde T., (2012), Financial Sector Development and Economic Growth Nexus in South Africa, International Journal of Monetary Economics and Finance, 5 (1), 64–75.

Tax Justice Network, (2007), Identifying Tax Havens and Offshore Financial Centres,, (31.05.2016).

Timmer M., Moergastel van T., Stuivenwold E., Ypma G., O’Mahony M., Kangasniemi M., (2007), EU KLEMS Growth and Productivity Accounts, Part I Methodology, European Commission, Luxembourg.

Tomlinson M., (2000), Information and Technology Flows from the Service Sector: a UK–Japan Comparison, in: Boden M., Miles I., (eds.), Services and the Knowledge-based Economy, Continuum, London, 209–221.

Windrum P., Tomlinson M., (1998), The Impact of KIBS on International Competitiveness: a UK-Netherlands Comparison, SI4S Topical Paper, 10,, (3.02.2012).

Windrum P., Tomlinson M., (1999), Knowledge-intensive Services and International Competitiveness: a Four Country Comparison, Technology Analysis and Strategic Management, 11 (3), 391–408.

WIOD, (2013), National Input-Output Tables: Time Series Supply and Use Tables, Use Tables at Purchasers’ Prices, WIOD database,, (5.11.2013).

WIOD, (2014), Socio-Economic Accounts: Basic Data on Output and Employment, WIOD Database, www., (1.12.2014).

Wyszkowska-Kuna J., (2016), Usługi biznesowe oparte na wiedzy. Wpływ na konkurencyjność gospodarki na przykładzie wybranych krajów Unii Europejskiej, Wydawnictwo Uniwersytetu Łódzkiego, Łódź.

Back to top
© 2019–2022 Copyright by Statistics Poland, some rights reserved. Creative Commons Attribution-ShareAlike 4.0 International Public License (CC BY-SA 4.0) Creative Commons — Attribution-ShareAlike 4.0 International — CC BY-SA 4.0