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Spatial determinants of productivity: analysis for the regions of Great Britain

Patricia Rice and Anthony Venables ()

LSE Research Online Documents on Economics from London School of Economics and Political Science, LSE Library

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: R1 O4 (search for similar items in EconPapers)
Date: 2004-07
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http://eprints.lse.ac.uk/2040/ Open access version. (application/pdf)

Related works:
Journal Article: Spatial determinants of productivity: Analysis for the regions of Great Britain (2006) Downloads
Working Paper: Spatial Determinants of Productivity: Analysis for the Regions of Great Britain (2004) Downloads
Working Paper: Spatial Determinants of Productivity: Analysis for the Regions of Great Britain (2004) Downloads
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Persistent link: https://EconPapers.repec.org/RePEc:ehl:lserod:2040

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