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Spatial Variation in Labour Productivity in British Manufacturing

  • Daniel Graham
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    This paper identifies factors underpinning spatial variation in manufacturing labour productivity in Britain at the county level, examining the relative influences of spatial external effects, the degree of capital intensity, industrial structure, and labour force 'quality'. In doing so, it sets out to test the hypothesis that spatial external economies are not only derived from the immediate environment but also exist over more dispersed areas, such that they can be enjoyed by firms in locations outside major centres. The results show that locational externalities continue to have a very small impact on spatial variation in manufacturing labour productivity in Britain. The really large and instrumental effects arise from variation in capital to labour ratios, industrial structure, and labour force characteristics.

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    File URL: http://www.tandfonline.com/doi/abs/10.1080/02692170050084060
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    Article provided by Taylor & Francis Journals in its journal International Review of Applied Economics.

    Volume (Year): 14 (2000)
    Issue (Month): 3 ()
    Pages: 323-341

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    Handle: RePEc:taf:irapec:v:14:y:2000:i:3:p:323-341
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    1. Moomaw, Ronald L., 1985. "Firm location and city size: Reduced productivity advantages as a factor in the decline of manufacturing in urban areas," Journal of Urban Economics, Elsevier, vol. 17(1), pages 73-89, January.
    2. Helen Louri, 1988. "Urban Growth and Productivity: The Case of Greece," Urban Studies, Urban Studies Journal Limited, vol. 25(5), pages 433-438, October.
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    5. Carlino, Gerald A. & Voith, Richard, 1992. "Accounting for differences in aggregate state productivity," Regional Science and Urban Economics, Elsevier, vol. 22(4), pages 597-617, November.
    6. Hanson, Gordon H., 1996. "Agglomeration, Dispersion, and the Pioneer Firm," Journal of Urban Economics, Elsevier, vol. 39(3), pages 255-281, May.
    7. Carlino, Gerald A., 1985. "Declining city productivity and the growth of rural regions: A test of alternative explanations," Journal of Urban Economics, Elsevier, vol. 18(1), pages 11-27, July.
    8. Henderson, J. Vernon, 1986. "Efficiency of resource usage and city size," Journal of Urban Economics, Elsevier, vol. 19(1), pages 47-70, January.
    9. Calem, Paul S. & Carlino, Gerald A., 1991. "Urban agglomeration economies in the presence of technical change," Journal of Urban Economics, Elsevier, vol. 29(1), pages 82-95, January.
    10. Segal, David, 1976. "Are There Returns to Scale in City Size?," The Review of Economics and Statistics, MIT Press, vol. 58(3), pages 339-50, August.
    11. Beeson, Patricia E., 1990. "Sources of the decline of manufacturing in large metropolitan areas," Journal of Urban Economics, Elsevier, vol. 28(1), pages 71-86, July.
    12. Henderson, J. Vernon, 1991. "Urban Development: Theory, Fact, and Illusion," OUP Catalogue, Oxford University Press, number 9780195069020, March.
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