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The Movement of Manufacturing Industry in Great Britain: An Inter-County Analysis, 1972-1981

Author

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  • Jim Taylor

    (Department of Economics at the University of Lancaster)

  • Jim Twomey

    (Department of Economics and Economic History at Manchester Polytechnic)

Abstract

This paper is concerned with the movement of manufacturing industry between GB counties during the period 1972-81. After discussing the nature of movement data, the inter-regional and inter-county movement of manufacturing establishments is examined for the period 1972-81. The main focus of the paper, however, lies in the development of a model of industrial movement based upon a stock-adjustment approach distinguishing between actual and optimal moves and leading to an empirical test of various explanations of industrial movement via a binomial probability model. The main findings are that inter-county differences in industrial rates and in the cost of premises had a significant effect on movement during the period 1972-81. Distance, as expected, also played a critical role in explaining the geographical pattern of movement though labour availability and labour costs were found to be unrelated to this pattern. Finally, the impact of regional financial incentives is found to be negligible but this result may be due to the spatially restricted nature of certain data items which limit the subsequent application of the model.

Suggested Citation

  • Jim Taylor & Jim Twomey, 1988. "The Movement of Manufacturing Industry in Great Britain: An Inter-County Analysis, 1972-1981," Urban Studies, Urban Studies Journal Limited, vol. 25(3), pages 228-242, June.
    • Handle: RePEc:sae:urbstu:v:25:y:1988:i:3:p:228-242
    DOI: 10.1080/00420988820080311
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    References listed on IDEAS

    as
    1. Ashcroft, Brian & Taylor, Jim, 1977. "The Movement of Manufacturing Industry and the Effect of Regional Policy," Oxford Economic Papers, Oxford University Press, vol. 29(1), pages 84-101, March.
    2. Moore, Barry C & Rhodes, John, 1976. "Regional Economic Policy and the Movement of Manufacturing Firms to Development Areas," Economica, London School of Economics and Political Science, vol. 43(169), pages 17-31, February.
    3. Twomey, Jim & Taylor, Jim, 1985. "Regional Policy and the Interregional Movement of Manufacturing Industry in Great Britain," Scottish Journal of Political Economy, Scottish Economic Society, vol. 32(3), pages 257-277, November.
    4. Townroe, P. M., 1973. "The supply of mobile industry: A cross-sectional analysis," Regional and Urban Economics, Elsevier, vol. 2(4), pages 371-385.
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    Cited by:

    1. H.D. Watts, 1991. "Plant Closures in Urban Areas: Towards a Local Policy Response," Urban Studies, Urban Studies Journal Limited, vol. 28(5), pages 803-817, October.
    2. Kevin Denny & Ridge, M, 1992. "The implications of a switch to locally varying business rates," Fiscal Studies, Institute for Fiscal Studies, vol. 13(1), pages 22-37, February.
    3. J Tomkins & J Twomey, 1990. "The Changing Spatial Structure of Manufacturing Plant in Great Britain, 1976 to 1987," Environment and Planning A, , vol. 22(3), pages 385-398, March.
    4. Bernard Fingleton, 1992. "The Location of Employment in High-technology Manufacturing in Great Britain," Urban Studies, Urban Studies Journal Limited, vol. 29(8), pages 1265-1276, December.

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