THE ROLE OF THE MANUFACTURING BASE IN THE DEVELOPMENT OF PRIVATE AND PUBLIC-SERVICES

Although industrial employment has been going down over the last two d ecades, it is argued in this paper that a solid manufacturing base rem ains a vital component in the development of service activities. This argument is illustrated by a regression analysis of the growth of empl oyment in private and public service activities for the 43 Belgian dis tricts over 1975-88. The results show that the broader the manufacturi ng base, the higher the growth of employment in private service activi ties. Private activities in manufacturing and in services also appear to be an influencing determinant of employment in public service activ ities.