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Comparative Analysis of Servitization in European Union Countries Using Hellwig's Synthetic Measure of Development
The purpose of this paper is to evaluate and compare the degree of servitization of the economies of European Union countries and to assess the importance of servitization for sustainable development. This study used Eurostat data from the years 2000 and 2023. Using Hellwig’s synthetic measure of development, four groups of countries differing in the degree of servitization in each of the years studied were created and then compared in the context of the differences between them, including population density, the share of the service sector in employment and gross value-added creation, and the level of gross value added created by the service sector per capita. The results showed that a high degree of servitization characterizes mainly the rich countries of the EU-15, while a lower one applies mainly to the countries of Central and Eastern Europe. The service sector increased its share in employment, structure, and gross value-added creation during the period under review. High population density was also a factor conducive to the development of services, but its increase did not always coexist with an increase in the degree of servitization of the economy. Servitization drives development and facilitates optimal use of resources. However, high levels of servitization are not always reflected in good values of sustainable development. Servitization processes can be stimulated by adequate economic development policies, but the methods and actions taken in this regard should be adapted to the level of economic development and the specifics of each country.
The Use of Agricultural Services in European Union Regions Differing in Selected Agricultural Characteristics
Agricultural services, understood as the rental of machinery and equipment with appropriate labor, are one of the three types of production services in agriculture distinguished by European Union legislation. The aim of this paper is to identify clusters of regions in the European Union that differ in the level of use of agricultural services on farms and in selected characteristics related to production potential, labor input, and type of agricultural production. For this purpose, Ward’s method, from the group of hierarchical agglomerative cluster analysis methods, was used. Based on data on farms using agricultural services in 124 regions of the European Union, six clusters were formed. The study showed that agricultural services substitute for labor inputs in intensive agricultural production conditions, but in a situation with good technical equipment, farms may more often choose to employ hired workers. Such substitution does not occur in regions that are moderately and less well-equipped with machinery and equipment, because hired labor cannot completely replace the scarcity of machinery. The level of use of agricultural services is also related to the profile of the production carried out and the area of agricultural land, followed by the resources of land, capital, and labor. The level of economic development and historical background are also important.