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Total factor productivity growth in local economic partnership regions in Britain, 1997-2008

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  • Harris, Richard
  • Moffat, John

Abstract

This paper decomposes aggregate TFP growth in Britain for 1997-2008 to show the contribution of different LEPs and the role played by manufacturing and services and UK- and foreign-owned plants within these LEPs. These contributions are further decomposed to show the role of productivity growth in continuing plants vis-à-vis reallocations in output shares. The results show that the largest LEPs, in population terms, with higher levels of job density, greater reliance on manufacturing and skilled worker occupations, higher proportions of workers with NVQ4+ qualifications, and lower turnover of businesses, achieved the highest TFP growth. This strong performance is mostly the result of reallocations of output shares towards high productivity continuing plants and the opening of high productivity plants.

Suggested Citation

  • Harris, Richard & Moffat, John, 2012. "Total factor productivity growth in local economic partnership regions in Britain, 1997-2008," LSE Research Online Documents on Economics 59249, London School of Economics and Political Science, LSE Library.
    • Handle: RePEc:ehl:lserod:59249
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    File URL: http://eprints.lse.ac.uk/59249/
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    Cited by:

    1. 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).
    2. Rebecca Riley & Chiara Rosazza Bondibene & Garry Young, 2013. "Productivity Dynamics in the Great Stagnation: Evidence from British businesses," Discussion Papers 1407, Centre for Macroeconomics (CFM), revised Apr 2014.
    3. Riley, Rebecca & Rosazza-Bondibene, Chiara & Young, Garry, 2015. "The UK productivity puzzle 2008-13: evidence from British businesses," Bank of England working papers 531, Bank of England.
    4. Barnett, Alina & Chiu, Adrian & Franklin, Jeremy & Sebastia-Barriel, Maria, 2014. "The productivity puzzle: a firm-level investigation into employment behaviour and resource allocation over the crisis," Bank of England working papers 495, Bank of England.

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    More about this item

    Keywords

    productivity decomposition; regional productivity growth;

    JEL classification:

    • J1 - Labor and Demographic Economics - - Demographic Economics

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