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Regional Productivity Differentials: Explaining the Gap

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Author Info

  • Martin Boddy
  • John Hudson
  • Anthony Plumridge
  • Don Webber

    ()
    (School of Economics, University of the West of England)

Abstract

Issues of productivity and competitiveness at a regional level have increasingly been a focus for both academic and policy concern. Significant and persistent differences in productivity are evident both in the UK and across Europe as a whole. This paper uses data relating to individual business units to examine the determinants of regional productivity differentials across British regions. It demonstrates that the substantial differences in regional productivity can be explained by a fairly limited set of variables. These include industry mix, the capital employed by the firm, business ownership and the skills of the local labour force. Also important are location-specific factors including travel-time from London and population density. Taken together, these factors largely explain regional productivity differentials. The analysis extends those studies that have identified but not quantified the role of different ‘productivity drivers’ in a systematic fashion or that have focused on only a limited set of drivers. It has important policy implications particular in relation to the role of travel time and possible effects of density and agglomeration.

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File URL: http://carecon.org.uk/DPs/0515.pdf
File Function: First version, 2005
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Bibliographic Info

Paper provided by Department of Accounting, Economics and Finance, Bristol Business School, University of the West of England, Bristol in its series Working Papers with number 0515.

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Length: 21 pages
Date of creation: Dec 2005
Date of revision:
Handle: RePEc:uwe:wpaper:0515

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Phone: 0117 328 3610
Web page: http://www1.uwe.ac.uk/bl/research/bristoleconomics.aspx
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Related research

Keywords: Regional competitiveness; Productivity; UK; Regional development; business-data analysis;

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References

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  1. Patricia Rice & Anthony J. Venables, 2004. "Spatial Determinants of Productivity: Analysis for the Regions of Great Britain," CEP Discussion Papers, Centre for Economic Performance, LSE dp0642, Centre for Economic Performance, LSE.
  2. Ben Gardiner & Ron Martin & Tyler Peter, 2004. "Competitiveness, Productivity and Economic Growth across the European Regions," ERSA conference papers ersa04p333, European Regional Science Association.
  3. Michael Kitson & Ron Martin & Peter Tyler, 2004. "Regional Competitiveness: An Elusive yet Key Concept?," Regional Studies, Taylor & Francis Journals, Taylor & Francis Journals, vol. 38(9), pages 991-999.
  4. Criscuolo, Chiara & Ralf Martin, 2003. "Multinationals, foreign ownership and US productivity leadership: Evidence from the UK," Royal Economic Society Annual Conference 2003, Royal Economic Society 50, Royal Economic Society.
  5. Camagni, Roberto, 2002. "On the concept of territorial competitiveness: sound or misleading?," ERSA conference papers ersa02p518, European Regional Science Association.
  6. Don Webber & Paul White, 2008. "Productivity and Proximity," Working Papers, Department of Accounting, Economics and Finance, Bristol Business School, University of the West of England, Bristol 0805, Department of Accounting, Economics and Finance, Bristol Business School, University of the West of England, Bristol.
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Citations

Blog mentions

As found by EconAcademics.org, the blog aggregator for Economics research:
  1. UK productivity: the London effect
    by ? in New Economist on 2006-01-26 12:31:00
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Cited by:
  1. Don J. Webber & Michael Horswell, 2009. "Microeconomic foundations of geographical variations in labour productivity," Working Papers, Department of Accounting, Economics and Finance, Bristol Business School, University of the West of England, Bristol 0913, Department of Accounting, Economics and Finance, Bristol Business School, University of the West of England, Bristol.

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