Regional productivity differentials: Explaining the gap
Webber, D. J., Hudson, J., Boddy, M. and Plumridge, A. (2009) Regional productivity differentials: Explaining the gap. Papers in Regional Science, 88 (3). pp. 609-621. ISSN 1056-8190
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Publisher's URL: http://dx.doi.org/10.1111/j.1435-5957.2008.00209.x
Significant and persistent differences in regional productivity exist across most countries and are the subject of academic and policy concern. We use firm-level data to examine the determinants of regional productivity differentials across British regions and demonstrate that the substantial differences in regional productivity can be explained by a fairly limited set of variables, including industry mix, capital stock, ownership and skills. Location-specific factors of travel-time and population density are also identified as being important.
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