Spatial Determinants of Productivity: Analysis for the Regions of Great Britain

Anthony Venables and Patricia Rice

No 4527, CEPR Discussion Papers from Centre for Economic Policy Research

Abstract: This Paper uses NUTS3 sub-regional data for Great Britain to analyse the determinants of spatial variations in income and productivity. We decompose the spatial variation of earnings into a productivity effect and an occupational composition effect. For the former (but not the latter) we find a robust relationship with proximity to economic mass, suggesting that doubling the population of working age proximate to an area is associated with a 3.5% increase in productivity in the area. We measure proximity by travel time, and show that effects decline steeply with time, ceasing to be important beyond approximately 80 minutes.

Keywords: Regional disparities; Productivity; Clustering (search for similar items in EconPapers)
JEL-codes: O40 R10 (search for similar items in EconPapers)
Date: 2004-08
New Economics Papers: this item is included in nep-eff, nep-geo and nep-ure
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Citations: View citations in EconPapers (35)

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Related works:
Journal Article: Spatial determinants of productivity: Analysis for the regions of Great Britain (2006)
Working Paper: Spatial Determinants of Productivity: Analysis for the Regions of Great Britain (2004)
Working Paper: Spatial determinants of productivity: analysis for the regions of Great Britain (2004)
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