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Growth and Profitability in the Leeds Engineering Sector

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  • Dobson, Stephen M
  • Gerrard, Bill J

Abstract

This paper investigates the determination of growth and profitability of engineering firms located in Leeds. The model draws on the existing literature in industrial economics, supplemented by variables reflecting the spatial dimension. The principal conclusions are firstly, the results are significantly affected by the precise definitions of the variables used; secondly, there is clear evidence that the relationship between growth and profitability runs in both directions; and finally, the results show that spatial factors are a significant determinant of the performance of firms. In particular, an inner-city location has a significant negative impact on the rate of return on assets. Copyright 1989 by Scottish Economic Society.

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Bibliographic Info

Article provided by Scottish Economic Society in its journal Scottish Journal of Political Economy.

Volume (Year): 36 (1989)
Issue (Month): 4 (November)
Pages: 334-52

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Handle: RePEc:bla:scotjp:v:36:y:1989:i:4:p:334-52

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Cited by:
  1. Gavin C Reid, 1997. "The Development and Survival of New Small Businesses: Empirical Evidence for Scotland 1994-97," CRIEFF Discussion Papers, Centre for Research into Industry, Enterprise, Finance and the Firm 9712, Centre for Research into Industry, Enterprise, Finance and the Firm.
  2. Hagedoorn, John & Wang, Ning, 2010. "Is there complementarity or substitutability between internal and external R&D strategies?," MERIT Working Papers 005, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
  3. Gavin C Reid, 1997. "Small Firms' Actions and their Survival Probabilities," CRIEFF Discussion Papers, Centre for Research into Industry, Enterprise, Finance and the Firm 9721, Centre for Research into Industry, Enterprise, Finance and the Firm.
  4. Gavin C Reid, 1994. "Limit's to a Firm's Rate of Growth: the Richardsonian View and its Contemporary Empirical Significance," CRIEFF Discussion Papers, Centre for Research into Industry, Enterprise, Finance and the Firm 9426, Centre for Research into Industry, Enterprise, Finance and the Firm.

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