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Country-level Business Performance and Policy Asymmetries in Great Britain


Author Info

  • Anthony Plumridge

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

  • Don J. Webber

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

  • Martin Boddy

    (Faculty of the Built Environment, University of the West of England)

  • John Hudson

    (Depatment of Economics, University of Bath)


The HM Treasury identifies key ‘drivers’ of business performance and productivity differentials, which include skills, investment and competition. This paper presents an empirical investigation into the effects of these drivers on business-level productivity per employee across England, Scotland and Wales in order to identify whether spatial differences in the influence of these drivers exist. We adopt the Cobb-Douglas production function approach and our results suggest that, after taking account of sector specific effects, productivity differentials do exist between businesses across Great Britain and that policy instruments do potentially enhance productivity. The results indicate that these key drivers are equally applicable across countries of Great Britain. However, there is evidence to suggest that scale effects for labour and capital do differ across England, Wales and Scotland and that policy makers should be aware of these asymmetries.

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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 0611.

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Length: 11 pages
Date of creation: Nov 2006
Date of revision:
Handle: RePEc:uwe:wpaper:0611

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Related research

Keywords: Productivity per employee; HM Treasury’s key drivers; scale effects;

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  1. Ben Gardiner & Ron Martin & Tyler Peter, 2004. "Competitiveness, Productivity and Economic Growth across the European Regions," ERSA conference papers ersa04p333, European Regional Science Association.
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