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Country-level business performance and policy asymmetries in the UK

Author

Listed:
  • Anthony Plumridge
  • Don J. Webber
  • Martin Boddy
  • John Hudson

Abstract

The HM Treasury identifies the key 'drivers' of business performance and productivity differentials, which include skills, investment and competition. This paper presents an empirical investigation into the effects of these drivers on business-level productivity per employee across England, Scotland and Wales in order to identify whether spatial differences in the influence of these drivers exist. We adopt the Cobb-Douglas production function approach and our results suggest that, after taking account of sector-specific effects, productivity differentials do exist between businesses across the UK and that policy instruments do potentially enhance productivity. The results indicate that these key drivers are equally applicable across the countries of the UK. However, there is evidence to suggest that the scale effects for labour and capital do differ across England, Wales and Scotland and that policy-makers should be aware of these asymmetries.

Suggested Citation

  • Anthony Plumridge & Don J. Webber & Martin Boddy & John Hudson, 2008. "Country-level business performance and policy asymmetries in the UK," International Journal of Business Performance Management, Inderscience Enterprises Ltd, vol. 10(4), pages 305-317.
    • Handle: RePEc:ids:ijbpma:v:10:y:2008:i:4:p:305-317
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    Cited by:

    1. Steve Talbot, 2016. "Creating a smart rural economy through smart specialisation: The microsphere model," Local Economy, London South Bank University, vol. 31(8), pages 892-919, December.

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