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Impact of Regional Selective Assistance on sources of productivity growth: Plant-level evidence from UK manufacturing, 1990-98

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  • Richard Harris
  • Catherine Robinson

Abstract

Harris R. and Robinson C. (2005) Impact of Regional Selective Assistance on sources of productivity growth: plant-level evidence from UK manufacturing, 1990-98, Regional Studies 39 , 751-765. Regional policy has been an enduring aspect of post-war industrial policy in the UK, based on a recognition of the need to reduce regional disparities in employment, earnings and the cost of living. Department of Trade and Industry (DTI) support schemes are designed to achieve a number of varying and occasionally conflicting objectives, but their overarching intention arguably must be to improve the economic performance of the plants they assist in order to increase productivity growth in the regions. Research into the sources of productivity growth has indicated that the entry and exit of plants plays a significant role, but also the reallocation of inputs from plants within the industry. This paper uses decomposition analysis to look at sources of total factor productivity growth for UK manufacturing plants, allowing for comparisons across regions, industries and between assisted and non-assisted plants, based on the Regional Selective Assistance scheme.

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  • Richard Harris & Catherine Robinson, 2005. "Impact of Regional Selective Assistance on sources of productivity growth: Plant-level evidence from UK manufacturing, 1990-98," Regional Studies, Taylor & Francis Journals, vol. 39(6), pages 751-765.
    • Handle: RePEc:taf:regstd:v:39:y:2005:i:6:p:751-765
    DOI: 10.1080/00343400500213648
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    Cited by:

    1. Richard Harris, 2011. "Models Of Regional Growth: Past, Present And Future," Journal of Economic Surveys, Wiley Blackwell, vol. 25(5), pages 913-951, December.
    2. Richard Harris & John Moffat, 2011. "Plant-level Determinants of Total Factor Productivity in Great Britain, 1997-2006," SERC Discussion Papers 0064, Centre for Economic Performance, LSE.
    3. Criscuolo, Chiara & Martin, Ralf & Overman, Henry & Van Reenen, John, 2012. "The Causal Effects of an Industrial Policy," IZA Discussion Papers 6323, Institute of Labor Economics (IZA).
    4. Gustavsson Tingvall, Patrik & Videnord, Josefin, 2017. "Regional Effects of Publicly Sponsored R&D Grants on SME Performance," Ratio Working Papers 289, The Ratio Institute.
    5. James Foreman-Peck & Laurian Lungu & Patrick Minford, 2000. "Fiscal Devolution in a Small Open Regional Economy," Regional and Urban Modeling 283600029, EcoMod.
    6. Blackaby, David H. & Drinkwater, Stephen & Robinson, Catherine, 2020. "Regional Variations in the Brexit Vote: Causes and Potential Consequences," IZA Discussion Papers 13579, Institute of Labor Economics (IZA).
    7. Chiara Criscuolo & Ralf Martin & Henry G. Overman & John Van Reenen, 2019. "Some Causal Effects of an Industrial Policy," American Economic Review, American Economic Association, vol. 109(1), pages 48-85, January.
    8. Bernini, Cristina & Cerqua, Augusto & Pellegrini, Guido, 2017. "Public subsidies, TFP and efficiency: A tale of complex relationships," Research Policy, Elsevier, vol. 46(4), pages 751-767.
    9. Geoff Mason & Catherine Robinson & Chiara Rosazza Bondibene, 2016. "Sources of Labour Productivity Growth at Sector Level in Britain, 1998-2007: A Firm-level Analysis," Review of Economics and Institutions, Università di Perugia, vol. 7(2).
    10. Stefaan Decramer & Stijn Vanormelingen, 2016. "The effectiveness of investment subsidies: evidence from a regression discontinuity design," Small Business Economics, Springer, vol. 47(4), pages 1007-1032, December.
    11. John Moffat, 2015. "Regional Selective Assistance (RSA) in Scotland: Does It Make a Difference to Plant Survival?," Regional Studies, Taylor & Francis Journals, vol. 49(4), pages 568-581, April.
    12. Diane Coyle & John McHale & Ioannis Bournakis & Jen‐Chung Mei, 2024. "Recent trends in firm‐level total factor productivity in the UK: new measures, new puzzles," Economica, London School of Economics and Political Science, vol. 91(364), pages 1320-1348, October.
    13. Jones, Jonathan & Wren, Colin, 2008. "Re-investment and the survival of foreign-owned plants," LSE Research Online Documents on Economics 33138, London School of Economics and Political Science, LSE Library.
    14. Jonathan Jones & Colin Wren, 2008. "Re-Investment and the Survival of Foreign-Owned Plants," SERC Discussion Papers 0003, Centre for Economic Performance, LSE.
    15. Ondřej Dvouletý & Ivana Blažková, 2019. "The Impact of Public Grants on Firm-Level Productivity: Findings from the Czech Food Industry," Sustainability, MDPI, vol. 11(2), pages 1-24, January.
    16. Wren, Colin & Jones, Jonathan, 2009. "Re-investment and the survival of foreign-owned plants," Regional Science and Urban Economics, Elsevier, vol. 39(2), pages 214-223, March.

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    More about this item

    Keywords

    Regional policy; Total factor productivity decomposition; UK manufacturing; Politique regionale; Decomposition de la productivite globale des facteurs de production; Industrie au Royaume-Uni; Regionalpolitik; Zerlegung aller Produktionsfaktoren; Herstellende Industrie des UK; Politica regional; Descomposicion de la productividad total factorial; Industria manufacturera britanica; JEL classifications: D24; L50; R58;
    All these keywords.

    JEL classification:

    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • L50 - Industrial Organization - - Regulation and Industrial Policy - - - General
    • R58 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Regional Development Planning and Policy

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