IDEAS home Printed from
MyIDEAS: Log in (now much improved!) to save this article

Is There a Rural-Urban Divide? Location and Productivity of UK Manufacturing

Listed author(s):
  • Marian Rizov
  • Patrick Paul Walsh

Rizov M. and Walsh P. P. Is there a rural-urban divide? Location and productivity of UK manufacturing, Regional Studies. Aggregate productivity of manufacturing industries by urban, rural less sparse, and rural sparse locations in the UK is computed from firm-specific total factor productivities, which are estimated by a semi-parametric algorithm, within four-digit manufacturing industries, using the FAME data set over the period 1994-2001. The productivity differentials across location categories are analysed by decomposing them into industry productivity effect and industry composition effect. The analysis indicates that at the end of twentieth century, a rural-urban divide in manufacturing productivity still remains, but there is a tendency for convergence between rural and urban location categories, possibly due to increased competitive pressure. The industry composition effect is positively correlated with the industry productivity effect, suggesting that locations with high productivity are also characterized by industrial structure enhancing productivity. [image omitted] Rizov M. et Walsh P. P. Est-ce qu'il y a un clivage urbano-rural? L'emplacement et la productivite de l'industrie au R-U, Regional Studies. On calcule la productivite globale de l'industrie au R-U en fonction des emplacements urbains, des emplacements ruraux moins eparpilles et des emplacements ruraux clairsemes a partir des productivites globales des facteurs specifiques aux entreprises et estimes a partir d'un algorithme semi-parametrique pour les industries a quatre chiffres, employant l'ensemble de donnees FAME sur la periode allant de 1994 jusqu'a 2001. On analyse les ecarts de productivite a travers les categories d'emplacement en les decomposant en l'effet productivite industrielle et l'effet composition industrielle. L'analyse indique qu'a la fin du vingtieme siecle, il restait un clivage urbano-rural pour ce qui est de la productivite industrielle, mais il y avait une tendance a la convergence entre les categories d'emplacement rurales et urbaines. Cela pourrait s'expliquer par une augmentation de la competitivite. L'effet composition industrielle est en correlation etroite avec l'effet productivite industrielle, ce qui laisse supposer que les emplacements a forte productivite se caracterisent aussi par une productivite qui ameliore la structure industrielle. Productivite globale des facteurs Estimation structurelle Definition ruralo-urbaine Industrie au R-U Rizov M. und Walsh P. P. Gibt es eine Kluft zwischen dem landlichen und stadtischen Raum? Standort und Produktivitat des britischen Produktionswesens, Regional Studies. Mit Hilfe des FAME-Datensatzes fur den Zeitraum von 1994 bis 2001 berechnen wir anhand der firmenspezifischen Gesamtfaktorproduktivitaten, die mit Hilfe eines semiparametrischen Algorithmus geschatzt werden, die Gesamtproduktivitat von produzierenden Branchen auf vierstelliger Ebene in urbanen sowie in gering bzw. sparlich besiedelten landlichen Gebieten Grossbritanniens. Wir analysieren die Differentiale der Produktivitat in Bezug auf verschiedene Standortskategorien, indem wir sie in eine Auswirkung auf die branchenspezifische Produktivitat und eine Auswirkung auf die Branchenzusammensetzung aufteilen. Aus der Analyse geht hervor, dass zum Ende des zwanzigsten Jahrhunderts hinsichtlich der Produktivitat der produzierenden Branchen weiterhin eine Kluft zwischen Stadt und Land besteht, aber zugleich die Tendenz einer Konvergenz von stadtischen und landlichen Standortskategorien zu beobachten ist, was moglicherweise auf den erhohten Konkurrenzdruck zuruckzufuhren ist. Die Auswirkung auf die Branchenzusammensetzung steht in positiver Korrelation zur Auswirkung auf die branchenspezifische Produktivitat, was darauf schliessen lasst, dass sich Standorte mit hoher Produktivitat auch durch eine Branchenstruktur auszeichnen, die die Produktivitat verbessert. Gesamtfaktorproduktivitat Strukturelle Schatzung Landlich-stadtische Definition Produktionswesen in Grossbritannien Rizov M. y Walsh P. P. ¿Existe una division entre zonas rurales y urbanas? Lugar y productividad de la industria manufacturera britanica, Regional Studies. A partir de la productividad total de los factores a nivel de empresas, que se estima mediante un algoritmo semiparametrico, calculamos la productividad agregada de las industrias manufactureras en zonas urbanas, zonas rurales con muy poca poblacion y zonas rurales con poblacion escasa en el Reino Unido para las industrias manufactureras de cuatro digitos con ayuda de los datos de FAME durante el periodo de 1994 a 2001. Analizamos los diferenciales de productividad en las diferentes categorias de lugares al descomponerlos en el efecto de la productividad industrial y el efecto de la composicion industrial. El analisis indica que al final del siglo XX, todavia existe una division rural-urbana en la productividad manufacturera pero hay una tendencia a la convergencia entre las categorias de zonas rurales y urbanas, posiblemente debido a un aumento de la presion competitiva. El efecto de la composicion industrial esta positivamente relacionado con el efecto de la productividad industrial, lo que indica que las zonas con una alta productividad se caracterizan por una estructura industrial que mejora la productividad. Productividad total de los factores Estimacion estructural Definicion de zona rural y urbana Industria manufacturera britanica

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

File URL:
Download Restriction: Access to full text is restricted to subscribers.

As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.

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

Volume (Year): 45 (2011)
Issue (Month): 5 ()
Pages: 641-656

in new window

Handle: RePEc:taf:regstd:v:45:y:2011:i:5:p:641-656
DOI: 10.1080/00343401003713449
Contact details of provider: Web page:

Order Information: Web:

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

in new window

  1. Ciccone, Antonio & Hall, Robert E, 1996. "Productivity and the Density of Economic Activity," American Economic Review, American Economic Association, vol. 86(1), pages 54-70, March.
  2. Michael Spence, 1976. "Product Selection, Fixed Costs, and Monopolistic Competition," Review of Economic Studies, Oxford University Press, vol. 43(2), pages 217-235.
  3. Jan Oosterhaven & Lourens Broersma, 2007. "Sector Structure and Cluster Economies: A Decomposition of Regional Labour Productivity," Regional Studies, Taylor & Francis Journals, vol. 41(5), pages 639-659.
  4. Ciccone, Antonio, 2002. "Agglomeration effects in Europe," European Economic Review, Elsevier, vol. 46(2), pages 213-227, February.
  5. Abdel-Rahman, H. M., 1988. "Product differentiation, monopolistic competition and city size," Regional Science and Urban Economics, Elsevier, vol. 18(1), pages 69-86, February.
  6. Rice, Patricia & Venables, Anthony J. & Patacchini, Eleonora, 2006. "Spatial determinants of productivity: Analysis for the regions of Great Britain," Regional Science and Urban Economics, Elsevier, vol. 36(6), pages 727-752, November.
  7. Bernard Fingleton, 2003. "Increasing returns: evidence from local wage rates in Great Britain," Oxford Economic Papers, Oxford University Press, vol. 55(4), pages 716-739, October.
  8. Marc J. Melitz, 2003. "The Impact of Trade on Intra-Industry Reallocations and Aggregate Industry Productivity," Econometrica, Econometric Society, vol. 71(6), pages 1695-1725, November.
  9. Henderson, J V, 1974. "The Sizes and Types of Cities," American Economic Review, American Economic Association, vol. 64(4), pages 640-656, September.
  10. Rivera-Batiz, Francisco L., 1988. "Increasing returns, monopolistic competition, and agglomeration economies in consumption and production," Regional Science and Urban Economics, Elsevier, vol. 18(1), pages 125-153, February.
  11. Don Webber & Nigel Curry & Anthony Plumridge, 2009. "Business Productivity and Area Productivity in Rural England," Regional Studies, Taylor & Francis Journals, vol. 43(5), pages 661-675.
  12. Harrigan, James, 1997. "Technology, Factor Supplies, and International Specialization: Estimating the Neoclassical Model," American Economic Review, American Economic Association, vol. 87(4), pages 475-494, September.
  13. Klette, Tor Jakob & Griliches, Zvi, 1996. "The Inconsistency of Common Scale Estimators When Output Prices Are Unobserved and Endogenous," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 11(4), pages 343-361, July-Aug..
  14. Marian Rizov & Patrick Paul Walsh, 2009. "Productivity and Trade Orientation in UK Manufacturing," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 71(6), pages 821-849, December.
  15. Olley, G Steven & Pakes, Ariel, 1996. "The Dynamics of Productivity in the Telecommunications Equipment Industry," Econometrica, Econometric Society, vol. 64(6), pages 1263-1297, November.
  16. Dixit, Avinash K & Stiglitz, Joseph E, 1977. "Monopolistic Competition and Optimum Product Diversity," American Economic Review, American Economic Association, vol. 67(3), pages 297-308, June.
  17. 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.
  18. Richard Ericson & Ariel Pakes, 1995. "Markov-Perfect Industry Dynamics: A Framework for Empirical Work," Review of Economic Studies, Oxford University Press, vol. 62(1), pages 53-82.
  19. Wooldridge, Jeffrey M., 2009. "On estimating firm-level production functions using proxy variables to control for unobservables," Economics Letters, Elsevier, vol. 104(3), pages 112-114, September.
  20. Fujita, Masahisa, 1988. "A monopolistic competition model of spatial agglomeration : Differentiated product approach," Regional Science and Urban Economics, Elsevier, vol. 18(1), pages 87-124, February.
  21. Haijime Katayama & Shihua Lu & James Tybout, 2003. "Why Plant-Level Productivity Studies are Often Misleading, and an Alternative Approach to Interference," NBER Working Papers 9617, National Bureau of Economic Research, Inc.
  22. Rosenthal, Stuart S. & Strange, William C., 2004. "Evidence on the nature and sources of agglomeration economies," Handbook of Regional and Urban Economics,in: J. V. Henderson & J. F. Thisse (ed.), Handbook of Regional and Urban Economics, edition 1, volume 4, chapter 49, pages 2119-2171 Elsevier.
Full references (including those not matched with items on IDEAS)

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

When requesting a correction, please mention this item's handle: RePEc:taf:regstd:v:45:y:2011:i:5:p:641-656. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Chris Longhurst)

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.

This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.