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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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    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. 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.
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    5. 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.
    6. 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.
    7. Gerald A. Carlino & Richard Voith, 1989. "Accounting for differences in aggregate state productivity," Working Papers 90-1, Federal Reserve Bank of Philadelphia.
    8. Hanson, Gordon H, 1996. "Localization Economies, Vertical Organization, and Trade," American Economic Review, American Economic Association, vol. 86(5), pages 1266-78, December.
    9. Henderson, J. Vernon, 1986. "Efficiency of resource usage and city size," Journal of Urban Economics, Elsevier, vol. 19(1), pages 47-70, January.
    10. Nakamura, Ryohei, 1985. "Agglomeration economies in urban manufacturing industries: A case of Japanese cities," Journal of Urban Economics, Elsevier, vol. 17(1), pages 108-124, January.
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