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

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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.

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en

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application/pdf

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http://eprints.lse.ac.uk/2040/1/Spatial_Determinants_of_Productivity_Analysis_for_the_Regions_of_Great_Britain.pdf

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