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Regional Productivity Differentials: Explaining the Gap

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Author Info
Martin Boddy
John Hudson
Anthony Plumridge
Don Webber () (School of Economics, University of the West of England)

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Abstract

Issues of productivity and competitiveness at a regional level have increasingly been a focus for both academic and policy concern. Significant and persistent differences in productivity are evident both in the UK and across Europe as a whole. This paper uses data relating to individual business units to examine the determinants of regional productivity differentials across British regions. It demonstrates that the substantial differences in regional productivity can be explained by a fairly limited set of variables. These include industry mix, the capital employed by the firm, business ownership and the skills of the local labour force. Also important are location-specific factors including travel-time from London and population density. Taken together, these factors largely explain regional productivity differentials. The analysis extends those studies that have identified but not quantified the role of different ‘productivity drivers’ in a systematic fashion or that have focused on only a limited set of drivers. It has important policy implications particular in relation to the role of travel time and possible effects of density and agglomeration.

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File URL: http://carecon.org.uk/DPs/0515.pdf
File Format: application/pdf
File Function: First version, 2005
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Publisher Info
Paper provided by University of the West of England, Department of Economics in its series Discussion Papers with number 0515.

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Length: 21 pages
Date of creation: Dec 2005
Date of revision:
Handle: RePEc:uwe:wpaper:0515

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Web page: http://www.uwe.ac.uk/bbs/acad/econ/econ.shtml
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Related research
Keywords: Regional competitiveness; Productivity; UK; Regional development; business-data analysis;

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Ben Gardiner & Ron Martin & Tyler Peter, 2004. "Competitiveness, Productivity and Economic Growth across the European Regions," ERSA conference papers ersa04p333, European Regional Science Association. [Downloadable!]
  2. Patricia Rice & Anthony J. Venables, 2004. "Spatial Determinants of Productivity: Analysis for the Regions of Great Britain," CEP Discussion Papers dp0642, Centre for Economic Performance, LSE. [Downloadable!]
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  3. Criscuolo, Chiara & Ralf Martin, 2003. "Multinationals, foreign ownership and US productivity leadership: Evidence from the UK," Royal Economic Society Annual Conference 2003 50, Royal Economic Society. [Downloadable!]
  4. Michael Kitson & Ron Martin & Peter Tyler, 2004. "Regional Competitiveness: An Elusive yet Key Concept?," Regional Studies, Taylor and Francis Journals, vol. 38(9), pages 991-999, January. [Downloadable!] (restricted)
  5. Camagni, Roberto, 2002. "On the concept of territorial competitiveness: sound or misleading?," ERSA conference papers ersa02p518, European Regional Science Association. [Downloadable!]
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Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. José Luis Iparraguirre D’Elia, 2008. "Northern Ireland’s Input-Output Table. An application of Kronenberg’s Derivative Approach," Selected Research Papers ERINI 2008_ni_input_intput_tabl, Economic Research Institute of Northern Ireland. [Downloadable!]
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