The Relationship between Diversification and Growth: Some Evidence from the British Urban System 1978 to 1991

Dan O’Donoghue

International Journal of Urban and Regional Research, 1999, vol. 23, issue 3, 549-566

Abstract: Employment diversification has traditionally been seen as beneficial for local economies. Most of the previous research on diversity and diversification has been conducted in the North American context where a positive association between diversification and growth has been observed. This paper explores the diversification process for 150 Job‐Centre Travel‐to‐Work Areas (JCTWAs) which make up what is called here the British urban system. Regression analysis is used to highlight that there is no evidence for the trends previously found in North America, in fact the opposite appears to be true. From 1978 to 1991 deindustrialization was seen to be a contributing factor to diversification and the associated decline of employment. Those centres which displayed growth from 1978 to 1991 were apparently those places which became more sectorally specialized, albeit from a relatively diverse initial position. — La diversification de l’emploi a traditionnellement été considérée comme profitable aux économies locales. Presque toutes les recherches précédentes sur la diversité et la diversification ont été conduites dans un contexte nord‐américain où une association positive entre la diversification et la croissance a été observée. Cet article explore le processus de diversification pour cent cinquante Job‐Centre Travel‐to‐Work Areas qui forment ce que l’on appelle ici le système urbain britannique. Une analyse de régression est utilisée afin de souligner qu’il n’y a aucune preuve des tendances précédemment découvertes aux États‐Unis. Le contraire semble en fait plus probable. De 1978 á 1991 la déindustrialisation était considérée être une cause contribuant á la diversification et au déclin de l’emploi qui lui est associé. Les centres qui manifestaient de la croissance entre 1978 et 1991 étaient apparemment ceux qui sont devenus plus spécialisés par secteurs, même si leurs positions initiales étaient relativement diverses.

Date: 1999
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