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Total Factor Productivity Growth in Local Economic Partnership Regions in Britain, 1997-2008

Richard Harris () and John Moffat ()

SERC Discussion Papers from Spatial Economics Research Centre, LSE

Abstract: This paper decomposes aggregate TFP growth in Britain for 1997-2008 to show the contribution of different LEPs and the role played by manufacturing and services and UK- and foreign-owned plants within these LEPs. These contributions are further decomposed to show the role of productivity growth in continuing plants vis-à-vis reallocations in output shares. The results show that the largest LEPs, in population terms, with higher levels of job density, greater reliance on manufacturing and skilled worker occupations, higher proportions of workers with NVQ4+ qualifications, and lower turnover of businesses, achieved the highest TFP growth. This strong performance is mostly the result of reallocations of output shares towards high productivity continuing plants and the opening of high productivity plants.

Keywords: Productivity decomposition; regional productivity growth (search for similar items in EconPapers)
JEL-codes: C23 D24 R12 (search for similar items in EconPapers)
Date: 2012-06
New Economics Papers: this item is included in nep-bec, nep-cse, nep-eff, nep-fdg, nep-geo, nep-sbm and nep-ure
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