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Growth and Profitability in the Leeds Engineering Sector

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  • Dobson, Stephen M
  • Gerrard, Bill J

Abstract

This paper investigates the determination of growth and profitability of engineering firms located in Leeds. The model draws on the existing literature in industrial economics, supplemented by variables reflecting the spatial dimension. The principal conclusions are firstly, the results are significantly affected by the precise definitions of the variables used; secondly, there is clear evidence that the relationship between growth and profitability runs in both directions; and finally, the results show that spatial factors are a significant determinant of the performance of firms. In particular, an inner-city location has a significant negative impact on the rate of return on assets. Copyright 1989 by Scottish Economic Society.

Suggested Citation

  • Dobson, Stephen M & Gerrard, Bill J, 1989. "Growth and Profitability in the Leeds Engineering Sector," Scottish Journal of Political Economy, Scottish Economic Society, vol. 36(4), pages 334-352, November.
  • Handle: RePEc:bla:scotjp:v:36:y:1989:i:4:p:334-52
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    Cited by:

    1. Wadim STRIELKOWSKI, 2012. "Factors That Determine Success Of Small And Medium Enteprises. The Role Of Internal And External Factors," Journal of Applied Economic Sciences, Spiru Haret University, Faculty of Financial Management and Accounting Craiova, vol. 7(3(21)/ Fa), pages 334-350.
    2. Hagedoorn, John & Wang, Ning, 2010. "Is there complementarity or substitutability between internal and external R&D strategies?," MERIT Working Papers 005, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).

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