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Spatial Variation in Labour Productivity in British Manufacturing

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  • Daniel Graham

Abstract

This paper identifies factors underpinning spatial variation in manufacturing labour productivity in Britain at the county level, examining the relative influences of spatial external effects, the degree of capital intensity, industrial structure, and labour force 'quality'. In doing so, it sets out to test the hypothesis that spatial external economies are not only derived from the immediate environment but also exist over more dispersed areas, such that they can be enjoyed by firms in locations outside major centres. The results show that locational externalities continue to have a very small impact on spatial variation in manufacturing labour productivity in Britain. The really large and instrumental effects arise from variation in capital to labour ratios, industrial structure, and labour force characteristics.

Suggested Citation

  • Daniel Graham, 2000. "Spatial Variation in Labour Productivity in British Manufacturing," International Review of Applied Economics, Taylor & Francis Journals, vol. 14(3), pages 323-341.
    • Handle: RePEc:taf:irapec:v:14:y:2000:i:3:p:323-341
    DOI: 10.1080/02692170050084060
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    Cited by:

    1. Piyapong Jiwattanakulpaisarn & Robert Noland & Daniel Graham & John Polak, 2006. "Highway Infrastructure Investment and Regional Employment Growth: Dynamic Panel Regression Analysis," ERSA conference papers ersa06p207, European Regional Science Association.
    2. Fu, Xiaolan & Buckley, Peter J. & Fu, Xiaoqing Maggie, 2020. "The Growth Impact of Chinese Direct Investment on Host Developing Countries," International Business Review, Elsevier, vol. 29(2).
    3. Graham, Daniel J. & Gibbons, Stephen, 2019. "Quantifying Wider Economic Impacts of agglomeration for transport appraisal: Existing evidence and future directions," Economics of Transportation, Elsevier, vol. 19(C), pages 1-1.
    4. Miwa Matsuo, 2014. "Competition over High-income Workers: Job Growth and Access to Labour in Atlanta," Urban Studies, Urban Studies Journal Limited, vol. 51(8), pages 1634-1652, June.
    5. Ahlfeldt, Gabriel M. & Pietrostefani, Elisabetta, 2019. "The economic effects of density: A synthesis," Journal of Urban Economics, Elsevier, vol. 111(C), pages 93-107.
    6. N. Domeque Claver & C. Fillat Castej & F. Sanz Gracia, 2012. "External economies as a mechanism of agglomeration in EU manufacturing," Applied Economics, Taylor & Francis Journals, vol. 44(34), pages 4421-4438, December.
    7. Graham, Daniel J. & Melo, Patricia C., 2009. "Agglomeration economies and labour productivity: evidence from longitudinal worker data for GB's travel-to-work areas," LSE Research Online Documents on Economics 33268, London School of Economics and Political Science, LSE Library.
    8. Daniel Graham, 2001. "Productivity growth in British manufacturing: spatial variation in the role of scale economies, technological growth and industrial structure," Applied Economics, Taylor & Francis Journals, vol. 33(6), pages 811-821.

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