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

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Author Info
Patricia Rice
Anthony J. Venables

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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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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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Related research
Keywords: regional disparities; productivity; clustering;

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Find related papers by JEL classification:
R1 - Urban, Rural, and Regional Economics - - General Regional Economics
O4 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity

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  1. Ciccone, Antonio & Hall, Robert E, 1996. "Productivity and the Density of Economic Activity," American Economic Review, American Economic Association, vol. 86(1), pages 54-70, March. [Downloadable!] (restricted)
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  2. Antonio Ciccone, 1998. "Agglomeration-effects in Europe," Economics Working Papers 499, Department of Economics and Business, Universitat Pompeu Fabra, revised Aug 1999. [Downloadable!]
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  3. Bernard, Andrew B & Stephen Redding & Peter K. Schott, 2003. "Factor Price Equalization in the UK?," Royal Economic Society Annual Conference 2003 21, Royal Economic Society. [Downloadable!]
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  4. Bernard Fingleton, 2001. "Equilibrium and Economic Growth: Spatial Econometric Models and Simulations," Journal of Regional Science, Blackwell Publishing, vol. 41(1), pages 117-147. [Downloadable!] (restricted)
  5. Stuart S. Rosenthal & William C. Strange, 2003. "Geography, Industrial Organization, and Agglomeration," The Review of Economics and Statistics, MIT Press, vol. 85(2), pages 377-393, 01. [Downloadable!] (restricted)
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  6. Redding, Stephen & Venables, Anthony J., 2004. "Economic geography and international inequality," Journal of International Economics, Elsevier, vol. 62(1), pages 53-82, January. [Downloadable!] (restricted)
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  7. Rosenthal, Stuart S. & Strange, William C., 2004. "Evidence on the nature and sources of agglomeration economies," Handbook of Regional and Urban Economics, in: J. V. Henderson & J. F. Thisse (ed.), Handbook of Regional and Urban Economics, edition 1, volume 4, chapter 49, pages 2119-2171 Elsevier. [Downloadable!] (restricted)
  8. Patricia Rice & Anthony Venables, 2003. "Equilibrium Regional Disparities: Theory and British Evidence," Regional Studies, Taylor and Francis Journals, vol. 37(6-7), pages 675-686, August. [Downloadable!] (restricted)
  9. Masahisa Fujita & Paul Krugman & Anthony J. Venables, 2001. "The Spatial Economy: Cities, Regions, and International Trade," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262561476.
  10. Krugman, Paul, 1991. "Increasing Returns and Economic Geography," Journal of Political Economy, University of Chicago Press, vol. 99(3), pages 483-99, June. [Downloadable!] (restricted)
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  11. Combes, Pierre-Philippe & Duranton, Gilles & Gobillon, Laurent, 2004. "Spatial Wage Disparities: Sorting Matters!," CEPR Discussion Papers 4240, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
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  1. Yusuf , Shahid & Nabeshima, Kaoru, 2009. "Can Malaysia escape the middle-income Trap ? a strategy for Penang," Policy Research Working Paper Series 4971, The World Bank. [Downloadable!]
  2. Bruckmeier, Kerstin & Schwengler, Barbara, 2009. "The impact of federal social policies on spatial income inequalities in Germany : empirical evidence from social security data," IAB Discussion Paper 200901, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany]. [Downloadable!]
  3. Anthony J. Venables, 2006. "Shifts in economic geography and their causes," Economic Review, Federal Reserve Bank of Kansas City, issue Q IV, pages 61-85. [Downloadable!]
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  4. Borgman, Benny & Braunerhjelm, Pontus, 2007. "Entrepreneurship and Local Growth - a comparison of the U.S. and Sweden," Working Paper Series in Economics and Institutions of Innovation 103, Royal Institute of Technology, CESIS - Centre of Excellence for Science and Innovation Studies. [Downloadable!]
  5. Hans-Friedrich Eckey & Reinhold Kosfeld & Nina Muraro, 2009. "Auswirkungen der Bevölkerungsentwicklung auf das wirtschaftliche Niveau der Regionen in Deutschland," MAGKS Papers on Economics 200901, Philipps-Universität Marburg, Faculty of Business Administration and Economics, Department of Economics (Volkswirtschaftliche Abteilung). [Downloadable!]
  6. Brülhart, Marius & Mathys, Nicole Andréa, 2007. "Sectoral Agglomeration Economies in a Panel of European Regions," CEPR Discussion Papers 6410, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
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  7. Patacchini, Eleonora & Zenou, Yves, 2007. "Ethnicity and Spatial Externalities in Crime," CEPR Discussion Papers 6130, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
  8. Andersson, Martin & Lööf, Hans, 2009. "Agglomeration and Productivity - evidence from firm-level data," Working Paper Series in Economics and Institutions of Innovation 170, Royal Institute of Technology, CESIS - Centre of Excellence for Science and Innovation Studies. [Downloadable!]
  9. Michael Kitson, 2005. "Policy Debates," Regional Studies, Taylor and Francis Journals, vol. 39(7), pages 987-1001, October. [Downloadable!] (restricted)
  10. Martin Boddy & John Hudson & Anthony Plumridge & Don Webber, 2005. "Regional Productivity Differentials: Explaining the Gap," Discussion Papers 0515, University of the West of England, Department of Economics. [Downloadable!]
  11. José Luis Iparraguirre D’Elia, 2008. "Northern Ireland’s Input-Output Table. An application of Kronenberg’s Derivative Approach," Selected Research Papers ERINI 2008_ni_input_intput_tabl, Economic Research Institute of Northern Ireland. [Downloadable!]
  12. Olaf Jonkeren & Erhan Demirel & Jos van Ommeren & Piet Rietveld, 2008. "Endogenous Transport Prices and Trade Imbalances," Tinbergen Institute Discussion Papers 08-088/3, Tinbergen Institute. [Downloadable!]
  13. Overman, Henry G. & Rice, Patricia & Venables, Anthony J., 2008. "Economic Linkages Across Space," CEPR Discussion Papers 6786, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
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  14. Stephen Gibbons & Olmo Silva, 2007. "Urban Density and Pupil Attainment," IZA Discussion Papers 2728, Institute for the Study of Labor (IZA). [Downloadable!]
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  15. Robert Stehrer & Neil Foster, 2008. "Sectoral Productivity, Density and Agglomeration in the Wider Europe," Working Papers 47, The Vienna Institute for International Economic Studies, wiiw. [Downloadable!]
  16. Kurt Geppert & Michael Happich & Andreas Stephan, 2005. "Regional Disparities in the European Union: Convergence and Agglomeration," Discussion Papers of DIW Berlin 525, DIW Berlin, German Institute for Economic Research. [Downloadable!]
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  17. Eleonora Patacchini, 2008. "Local analysis of economic disparities in Italy: a spatial statistics approach," Statistical Methods and Applications, Springer, vol. 17(1), pages 85-112, February. [Downloadable!] (restricted)
  18. Halfdanarson, Benedikt & Heuermann, Daniel F. & Suedekum, Jens, 2008. "Human Capital Externalities and the Urban Wage Premium: Two Literatures and their Interrelations," IZA Discussion Papers 3493, Institute for the Study of Labor (IZA). [Downloadable!]
  19. Patacchini, Eleonora & Zenou, Yves, 2008. "Ethnic Networks and Employment Outcomes," IZA Discussion Papers 3331, Institute for the Study of Labor (IZA). [Downloadable!]
  20. Mika Maliranta & Satu Nurmi, 2004. "Do Foreign Players Change the Nature of the Game Among Local Entrepreneurs?," Discussion Papers 942, The Research Institute of the Finnish Economy. [Downloadable!]
  21. Sabrina Di Addario & Eleonora Patacchini, 2007. "Wages and the City. Evidence from Italy," Development Working Papers 231, Centro Studi Luca d\'Agliano, University of Milano. [Downloadable!]
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  22. Buendía Azorín, J.D. & Esteban Yago, M.A. & Sánchez De La Vega, J.C., 2009. "Índices de valor unitario del comercio exterior de la región de Murcia y contribución de las exportaciones al crecimiento regional/," Estudios de Economía Aplicada, Estudios de Economía Aplicada, vol. 27, pages 285 (22 P, Abril. [Downloadable!] (restricted)
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