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

Spatial determinants of productivity: analysis for the Regions of Great Britain
Spatial determinants of productivity: analysis for the Regions of Great Britain
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.
regional disparities, productivity, clustering
CEPDP0642
Centre for Economic Policy Research
Venables, Anthony
f6cbde5f-17bd-4951-b80d-cd58bb0ef44a
Rice, Patricia
0254864f-b479-4f61-b836-f0d21426a272
Venables, Anthony
f6cbde5f-17bd-4951-b80d-cd58bb0ef44a
Rice, Patricia
0254864f-b479-4f61-b836-f0d21426a272

Venables, Anthony and Rice, Patricia (2004) Spatial determinants of productivity: analysis for the Regions of Great Britain (Centre for Economic Performance Discussion Papers, CEPDP0642) London, UK. Centre for Economic Policy Research 36pp.

Record type: Monograph (Discussion Paper)

Abstract

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.

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More information

Published date: 23 August 2004
Additional Information: JEL classification nos: R1, O4
Keywords: regional disparities, productivity, clustering

Identifiers

Local EPrints ID: 35324
URI: http://eprints.soton.ac.uk/id/eprint/35324
PURE UUID: 8bf252cd-790b-4e48-b573-23b82317145b

Catalogue record

Date deposited: 24 May 2006
Last modified: 27 Nov 2023 18:25

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Contributors

Author: Anthony Venables
Author: Patricia Rice

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