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Spatial determinants of productivity: Analysis for the regions of Great Britain

  • Rice, Patricia
  • Venables, Anthony J.
  • Patacchini, Eleonora

This Paper uses NUTS3 sub-regional data for Great Britain to analyse the determinants of spatial variations in income and productivity. We decompose the spatial variation of earnings into a productivity effect and an occupational composition effect. For the former (but not the latter) we find a robust relationship with proximity to economic mass, suggesting that doubling the population of working age proximate to an area is associated with a 3.5% increase in productivity in the area. We measure proximity by travel time, and show that effects decline steeply with time, ceasing to be important beyond approximately 80 minutes.

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Article provided by Elsevier in its journal Regional Science and Urban Economics.

Volume (Year): 36 (2006)
Issue (Month): 6 (November)
Pages: 727-752

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Handle: RePEc:eee:regeco:v:36:y:2006:i:6:p:727-752
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