Determinants of regional variations in the rate ofl profit. An empirical analysis for Austrian manufacturing 1972-1992
AbstractThe rate of profit represents a central concept in economics and is commonly seen as one of the most accurate indicators for economic vitality of firms, industries, and regions. The level of profit rates is supposed to guide investment shifts between sectors and over space, the speed and direction of technological change, and the development of economic activity in the long run. Differentiales in regional profit rates may therefore be a major source for differences in regional economic development and regional competitiveness. While neoclassical regional economic theory postulates a tendency towards an equalisation in regional rates of profit, empirical studies show considerable and persistent regional differences in profitability. The aim of the paper is to analyse the pattern of profitability over time and space for Austrian manufacturing on a highly disaggregated regional level for the time period 1972-1992. An eclectic model is employed in order to analyse major sources for regional variations in profit rates. The model distinguishes four groups of determinants: production technology, capital-labour-relations, market competition, and spatial variables such as transport costs and agglomeration economies.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by European Regional Science Association in its series ERSA conference papers with number ersa98p450.
Date of creation: Aug 1998
Date of revision:
Contact details of provider:
Postal: Welthandelsplatz 1, 1020 Vienna, Austria
Web page: http://www.ersa.org
You can help add them by filling out this form.
reading list or among the top items on IDEAS.Access and download statisticsgeneral information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Gunther Maier).
If references are entirely missing, you can add them using this form.