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Spatial Determinants of Productivity: Analysis for the Regions of Great Britain

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  • Patricia Rice
  • Anthony J. Venables

Abstract

This paper uses NUTS3 sub-regional data for Great Britain to analyse the determinants of spatialvariations in income and productivity. We decompose the spatial variation of earnings into aproductivity effect and an occupational composition effect. For the former (but not the latter) wefind a robust relationship with proximity to economic mass, suggesting that doubling thepopulation of working age proximate to an area is associated with a 3.5% increase in productivityin 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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Bibliographic Info

Paper provided by Centre for Economic Performance, LSE in its series CEP Discussion Papers with number dp0642.

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Date of creation: Jul 2004
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Handle: RePEc:cep:cepdps:dp0642

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Web page: http://cep.lse.ac.uk/_new/publications/series.asp?prog=CEP

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Keywords: regional disparities; productivity; clustering;

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  1. Bernard Fingleton, 2001. "Equilibrium and Economic Growth: Spatial Econometric Models and Simulations," Journal of Regional Science, Wiley Blackwell, Wiley Blackwell, vol. 41(1), pages 117-147.
  2. Redding, Stephen J & Venables, Anthony J., 2000. "Economic Geography and International Inequality," CEPR Discussion Papers, C.E.P.R. Discussion Papers 2568, C.E.P.R. Discussion Papers.
  3. Antonio Ciccone & Robert E. Hall, 1995. "Productivity and the density of economic activity," Economics Working Papers, Department of Economics and Business, Universitat Pompeu Fabra 120, Department of Economics and Business, Universitat Pompeu Fabra.
  4. Combes, Pierre-Philippe & Duranton, Gilles & Gobillon, Laurent, 2004. "Spatial Wage Disparities: Sorting Matters!," CEPR Discussion Papers, C.E.P.R. Discussion Papers 4240, C.E.P.R. Discussion Papers.
  5. Enrico Moretti, 2003. "Human Capital Externalities in Cities," NBER Working Papers 9641, National Bureau of Economic Research, Inc.
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  7. repec:cup:cbooks:9780521801386 is not listed on IDEAS
  8. Andersson, Roland & Quigley, John M. & Wilhelmsson, Mats, 2004. "University Decentralization as Regional Policy: The Swedish Experiment," Berkeley Program on Housing and Urban Policy, Working Paper Series, Berkeley Program on Housing and Urban Policy qt81n6b8fb, Berkeley Program on Housing and Urban Policy.
  9. J.V. Henderson, 1972. "The Sizes and Types of Cities," Working Papers, Queen's University, Department of Economics 75, Queen's University, Department of Economics.
  10. Bernard Fingleton, 2003. "Increasing returns: evidence from local wage rates in Great Britain," Oxford Economic Papers, Oxford University Press, vol. 55(4), pages 716-739, October.
  11. Rosenthal, Stuart S. & Strange, William C., 2004. "Evidence on the nature and sources of agglomeration economies," Handbook of Regional and Urban Economics, Elsevier, in: J. V. Henderson & J. F. Thisse (ed.), Handbook of Regional and Urban Economics, edition 1, volume 4, chapter 49, pages 2119-2171 Elsevier.
  12. Andrew B. Bernard & Stephen J. Redding & Peter K. Schott & Helen Simpson, 2002. "Factor Price Equalization in the UK?," Yale School of Management Working Papers, Yale School of Management ysm287, Yale School of Management.
  13. Paul Krugman, 1990. "Increasing Returns and Economic Geography," NBER Working Papers 3275, National Bureau of Economic Research, Inc.
  14. Edward L. Glaeser & David C. Mare, 1994. "Cities and Skills," NBER Working Papers 4728, National Bureau of Economic Research, Inc.
  15. Stuart S. Rosenthal & William C. Strange, 1999. "Geography, Industrial Organization, and Agglomeration," Center for Policy Research Working Papers, Center for Policy Research, Maxwell School, Syracuse University 14, Center for Policy Research, Maxwell School, Syracuse University.
  16. Esteban, J., 2000. "Regional convergence in Europe and the industry mix: a shift-share analysis," Regional Science and Urban Economics, Elsevier, Elsevier, vol. 30(3), pages 353-364, May.
  17. Antonio Ciccone, 1998. "Agglomeration-effects in Europe," Economics Working Papers, Department of Economics and Business, Universitat Pompeu Fabra 499, Department of Economics and Business, Universitat Pompeu Fabra, revised Aug 1999.
  18. Wheaton, William C. & Lewis, Mark J., 2002. "Urban Wages and Labor Market Agglomeration," Journal of Urban Economics, Elsevier, vol. 51(3), pages 542-562, May.
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  20. Patricia Rice & Anthony Venables, 2003. "Equilibrium Regional Disparities: Theory and British Evidence," Regional Studies, Taylor & Francis Journals, Taylor & Francis Journals, vol. 37(6-7), pages 675-686.
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