Spatial determinants of productivity: analysis for the Regions of Great Britain

Rice, Patricia and Venables, Anthony J. (2005) Spatial determinants of productivity: analysis for the Regions of Great Britain. London, UK, London School of Economics, 36pp. (Centre for Economic Performance Discussion Papers, CEPDP0642).


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This paper uses NUTS3 sub-regional data for Great Britain to analyse the
determinants of spatial variations in income and productivity. We decompose the
spatial variation of earnings into a productivity effect and an occupational
composition effect. For the former (but not the latter) we find a robust relationship
with proximity to economic mass, suggesting that doubling the population of
working age proximate to an area is associated with a 3.5% increase in productivity
in the area. We measure proximity by travel time, and show that effects decline
steeply with time, ceasing to be important beyond approximately 80 minutes.

Item Type: Monograph (Discussion Paper)
Additional Information: JEL classification nos: R1, O4
Related URLs:
Keywords: regional disparities, productivity, clustering
Subjects: H Social Sciences > HA Statistics
H Social Sciences > HC Economic History and Conditions
Divisions : University Structure - Pre August 2011 > School of Social Sciences > Economics
ePrint ID: 35324
Accepted Date and Publication Date:
Date Deposited: 24 May 2006
Last Modified: 31 Mar 2016 12:03

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