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Returns to Scale for EU Regional Manufacturing

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  • Alvaro Angeriz
  • John McCombie
  • Mark Roberts

Abstract

Recent theoretical advances have emphasised the importance of localised increasing returns to scale in understanding both the regional growth and agglomeration processes. However, considerable empirical controversy still exists over whether returns to scale are constant or increasing. Consequently, this study aims to provide some new estimates of the degree of returns to scale for EU regional manufacturing. It does so within the framework of the Verdoorn law. Unlike previous studies, issues of specification of fundamental importance to recent theoretical developments are brought to attention. Overall, the paper concludes that localised increasing returns in EU regional manufacturing are substantial.

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Bibliographic Info

Paper provided by Queen Mary, University of London, School of Business and Management, Centre for Globalisation Research in its series Working Papers with number 20.

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Date of creation: Aug 2008
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Handle: RePEc:cgs:wpaper:20

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Keywords: increasing returns; Verdoorn law; manufacturing; productivity growth; spatial econometrics;

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Cited by:
  1. Martinho, Vítor João Pereira Domingues, 2011. "The Keynesian theory and the manufactured industry in Portugal," MPRA Paper 33363, University Library of Munich, Germany.
  2. Andrew Sharpe & Eric Thomson, 2010. "Insights into Canada’s Abysmal Post-2000 Productivity Performance from Decompositions of Labour Productivity Growth by Industry and Province," International Productivity Monitor, Centre for the Study of Living Standards, vol. 20, pages 48-67, Fall.
  3. Charlie Karlsson & Gunther Maier & Michaela Trippl & Iulia Siedschlag & Robert Owen & Gavin Murphy, 2008. "ICT Diffusion, Innovation Systems, Globalisation and Regional Economic Dynamics: Theory and Empirical Evidence," Papers WP233, Economic and Social Research Institute (ESRI).

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