Technological Catch-Up and Geographic Proximity

32 Pages Posted: 13 Oct 2009

See all articles by Rachel Griffith

Rachel Griffith

Institute for Fiscal Studies (IFS); University of Manchester; Centre for Economic Policy Research (CEPR)

Stephen Redding

affiliation not provided to SSRN

Helen Simpson

CMPO; Institute for Fiscal Studies (IFS)

Date Written: 2009-04

Abstract

This paper examines productivity catch-up as a source of establishment productivity growth. We present evidence that, other things equal, establishments further behind the industry frontier experience faster rates of productivity growth. Geographic proximity to frontier firms makes catch-up faster. Our econometric specification implies a long-run relationship between productivity levels, where nonfrontier establishments lie a steady-state distance behind the frontier such that their rate of productivity growth including catch-up equals productivity growth at the frontier. We use our econometric estimates to quantify the implied contribution to productivity growth of catch-up to both the national and regional productivity frontiers.

Suggested Citation

Griffith, Rachel and Redding, Stephen and Simpson, Helen, Technological Catch-Up and Geographic Proximity (2009-04). Journal of Regional Science, Vol. 49, Issue 4, pp. 689-720, October 2009. Available at SSRN: https://ssrn.com/abstract=1487268 or http://dx.doi.org/10.1111/j.1467-9787.2009.00630.x

Rachel Griffith (Contact Author)

Institute for Fiscal Studies (IFS) ( email )

7 Ridgmount Street
London WC1E 7AE
United Kingdom
+44 20 7291 4800 (Phone)
+44 20 7323 4780 (Fax)

University of Manchester ( email )

Arthur Lewis Building
Oxford Road
Manchester, M13 9PL
United Kingdom

HOME PAGE: http://www.ifs.org.uk/people/profile?id=37

Centre for Economic Policy Research (CEPR)

London
United Kingdom

Stephen Redding

affiliation not provided to SSRN

No Address Available

Helen Simpson

CMPO ( email )

University of Bristol
2 Priory Road
Bristol, BS8 ITX
United Kingdom

Institute for Fiscal Studies (IFS) ( email )

7 Ridgmount Street
London, WC1E 7AE
United Kingdom
+44 20 7291 4800 (Phone)
+44 20 7323 4780 (Fax)

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