Growth and Profitability in the Leeds Engineering Sector

Stephen Dobson and Bill J Gerrard

Scottish Journal of Political Economy, 1989, vol. 36, issue 4, 334-52

Abstract: This paper investigates the determination of growth and profitability of engineering firms located in Leeds. The model draws on the existing literature in industrial economics, supplemented by variables reflecting the spatial dimension. The principal conclusions are firstly, the results are significantly affected by the precise definitions of the variables used; secondly, there is clear evidence that the relationship between growth and profitability runs in both directions; and finally, the results show that spatial factors are a significant determinant of the performance of firms. In particular, an inner-city location has a significant negative impact on the rate of return on assets. Copyright 1989 by Scottish Economic Society.

Date: 1989
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Persistent link: https://EconPapers.repec.org/RePEc:bla:scotjp:v:36:y:1989:i:4:p:334-52

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