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

Rice, Patricia and Venables, Tony (2004) Spatial determinants of productivity: analysis for the regions of Great Britain. CEPDP, 642. Centre for Economic Performance, London School of Economics and Political Science, London, UK. ISBN 0753017687

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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.

Item Type: Monograph (Discussion Paper)
Official URL: http://cep.lse.ac.uk
Additional Information: © 2004 the authors
Library of Congress subject classification: H Social Sciences > HB Economic Theory
Journal of Economic Literature Classification System: R - Urban, Rural, and Regional Economics > R1 - General Regional Economics
O - Economic Development, Technological Change, and Growth > O4 - Economic Growth and Aggregate Productivity
Sets: Collections > Economists Online
Research centres and groups > Centre for Economic Performance (CEP)
Departments > Economics
Rights: http://www.lse.ac.uk/library/usingTheLibrary/academicSupport/OA/depositYourResearch.aspx
Identification Number: 642
Date Deposited: 27 Apr 2007
URL: http://eprints.lse.ac.uk/2040/

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