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Impact of Regional Selective Assistance on sources of productivity growth: Plant-level evidence from UK manufacturing, 1990-98

  • Richard Harris
  • Catherine Robinson

Harris R. and Robinson C. (2005) Impact of Regional Selective Assistance on sources of productivity growth: plant-level evidence from UK manufacturing, 1990-98, Regional Studies 39 , 751-765. Regional policy has been an enduring aspect of post-war industrial policy in the UK, based on a recognition of the need to reduce regional disparities in employment, earnings and the cost of living. Department of Trade and Industry (DTI) support schemes are designed to achieve a number of varying and occasionally conflicting objectives, but their overarching intention arguably must be to improve the economic performance of the plants they assist in order to increase productivity growth in the regions. Research into the sources of productivity growth has indicated that the entry and exit of plants plays a significant role, but also the reallocation of inputs from plants within the industry. This paper uses decomposition analysis to look at sources of total factor productivity growth for UK manufacturing plants, allowing for comparisons across regions, industries and between assisted and non-assisted plants, based on the Regional Selective Assistance scheme.

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Article provided by Taylor & Francis Journals in its journal Regional Studies.

Volume (Year): 39 (2005)
Issue (Month): 6 ()
Pages: 751-765

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Handle: RePEc:taf:regstd:v:39:y:2005:i:6:p:751-765
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  1. Harvey Armstrong, 2001. "Regional Selective Assistance: Is the Spend Enough and Is It Targeting the Right Places?," Regional Studies, Taylor & Francis Journals, vol. 35(3), pages 247-257.
  2. Harris, Richard D, 2002. "Foreign Ownership and Productivity in the United Kingdom--Some Issues When Using the ARD Establishment Level Data," Scottish Journal of Political Economy, Scottish Economic Society, vol. 49(3), pages 318-35, August.
  3. McGuckin, Robert H. & Nguyen, Sang V., 2001. "The impact of ownership changes: a view from labor markets," International Journal of Industrial Organization, Elsevier, vol. 19(5), pages 739-762, April.
  4. Dan Kovenock & Gordon M Phillips, 1995. "Capital Structure and Product Market Behavior: An Examination of Plant Exit and Investment Decisions," Working Papers 95-4, Center for Economic Studies, U.S. Census Bureau.
  5. Richard Disney & Jonathan Haskel & Ylva Heden, 2003. "Restructuring and productivity growth in uk manufacturing," Economic Journal, Royal Economic Society, vol. 113(489), pages 666-694, 07.
  6. Mark E Doms, 1992. "Estimating Capital Efficiency Schedules Within Production Functions," Working Papers 92-4, Center for Economic Studies, U.S. Census Bureau.
  7. Girma, Sourafel & Wakelin, Katharine, 2001. "Regional Underdevelopment: Is FDI the Solution? A Semiparametric Analysis," CEPR Discussion Papers 2995, C.E.P.R. Discussion Papers.
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