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Impact of Regional Selective Assistance on sources of productivity growth: Plant-level evidence from UK manufacturing, 1990-98

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  • Richard Harris
  • Catherine Robinson

Abstract

Harris R. and Robinson C. (2005) Impact of Regional Selective Assistance on sources of productivity growth: plant-level evidence from UK manufacturing, 1990-98, Regional Studies 39 , 751-765. Regional policy has been an enduring aspect of post-war industrial policy in the UK, based on a recognition of the need to reduce regional disparities in employment, earnings and the cost of living. Department of Trade and Industry (DTI) support schemes are designed to achieve a number of varying and occasionally conflicting objectives, but their overarching intention arguably must be to improve the economic performance of the plants they assist in order to increase productivity growth in the regions. Research into the sources of productivity growth has indicated that the entry and exit of plants plays a significant role, but also the reallocation of inputs from plants within the industry. This paper uses decomposition analysis to look at sources of total factor productivity growth for UK manufacturing plants, allowing for comparisons across regions, industries and between assisted and non-assisted plants, based on the Regional Selective Assistance scheme.

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Bibliographic Info

Article provided by Taylor & Francis Journals in its journal Regional Studies.

Volume (Year): 39 (2005)
Issue (Month): 6 ()
Pages: 751-765

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Handle: RePEc:taf:regstd:v:39:y:2005:i:6:p:751-765

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Keywords: Regional policy; Total factor productivity decomposition; UK manufacturing; Politique regionale; Decomposition de la productivite globale des facteurs de production; Industrie au Royaume-Uni; Regionalpolitik; Zerlegung aller Produktionsfaktoren; Herstellende Industrie des UK; Politica regional; Descomposicion de la productividad total factorial; Industria manufacturera britanica; JEL classifications: D24; L50; R58;

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References

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  1. Kovenock, D. & Phillips, G.M., 1995. "Capital Structure and Product Market Behavior: An Examination of Plant Exit and Investment Decisions," UFAE and IAE Working Papers 313.95, Unitat de Fonaments de l'Anàlisi Econòmica (UAB) and Institut d'Anàlisi Econòmica (CSIC).
  2. McGuckin, Robert H. & Nguyen, Sang V., 2001. "The impact of ownership changes: a view from labor markets," International Journal of Industrial Organization, Elsevier, vol. 19(5), pages 739-762, April.
  3. Doms, Mark E, 1996. "Estimating Capital Efficiency Schedules within Production Functions," Economic Inquiry, Western Economic Association International, vol. 34(1), pages 78-92, January.
  4. Disney, Richard F & Haskel, Jonathan & Heden, Ylva, 2000. "Restructuring And Productivity Growth In UK Manufacturing," CEPR Discussion Papers 2463, C.E.P.R. Discussion Papers.
  5. Girma, Sourafel & Wakelin, Katharine, 2001. "Regional Underdevelopment: Is FDI the Solution? A Semiparametric Analysis," CEPR Discussion Papers 2995, C.E.P.R. Discussion Papers.
  6. Harris, Richard D, 2002. "Foreign Ownership and Productivity in the United Kingdom--Some Issues When Using the ARD Establishment Level Data," Scottish Journal of Political Economy, Scottish Economic Society, vol. 49(3), pages 318-35, August.
  7. Harvey Armstrong, 2001. "Regional Selective Assistance: Is the Spend Enough and Is It Targeting the Right Places?," Regional Studies, Taylor & Francis Journals, vol. 35(3), pages 247-257.
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Cited by:
  1. Richard Harris & John Moffat, 2011. "Plant-level Determinants of Total Factor Productivity in Great Britain, 1997-2006," SERC Discussion Papers 0064, Spatial Economics Research Centre, LSE.
  2. Criscuolo, Chiara & Martin, Ralf & Overman, Henry G & Van Reenen, John, 2012. "The causal effects of an industrial policy," CEPR Discussion Papers 8818, C.E.P.R. Discussion Papers.
  3. Jonathan Jones & Colin Wren, 2008. "Re-investment and the survival of foreign-owned plants," LSE Research Online Documents on Economics 33138, London School of Economics and Political Science, LSE Library.
  4. Jonathan Jones & Colin Wren, 2008. "Re-Investment and the Survival of Foreign-Owned Plants," SERC Discussion Papers 0003, Spatial Economics Research Centre, LSE.

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