Rice, Patricia and Venables, Anthony J.
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).
Full text not available from this repository.
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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