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

35 Pages Posted: 22 Sep 2004

See all articles by Patricia Rice

Patricia Rice

University of Southampton - Division of Economics

Anthony J. Venables

University of Oxford; Centre for Economic Policy Research (CEPR)

Date Written: August 2004

Abstract

This Paper uses NUTS3 sub-regional data for Great Britain to analyze 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

JEL Classification: O40, R10

Suggested Citation

Rice, Patricia and Venables, Anthony J., Spatial Determinants of Productivity: Analysis for the Regions of Great Britain (August 2004). Available at SSRN: https://ssrn.com/abstract=594344

Patricia Rice

University of Southampton - Division of Economics ( email )

Southampton, SO17 1BJ
United Kingdom
44 23 8059 3847 (Phone)
44 23 8059 3858 (Fax)

Anthony J. Venables (Contact Author)

University of Oxford ( email )

Mansfield Road
Oxford, Oxfordshire OX1 4AU
United Kingdom

Centre for Economic Policy Research (CEPR)

London
United Kingdom

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