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Does Spatial Proximity Raise Firm Productivity? Evidence from British Manufacturing

Harris, R; Moffat, J; Evenhuis, E; Martin, R; Pike, A; Sunley, Peter

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Authors

E Evenhuis

R Martin

A Pike

Peter Sunley



Abstract

The UK’s economy is one of the most regionally imbalanced in Europe. The government’s recent industrial strategy discusses various means of addressing this, one of which is the strengthening of existing clusters. Using plant-level indices of spatial proximity derived from postcode district data, this article investigates the extent of spatial concentration and its impact on total factor productivity in advanced manufacturing sectors in Great Britain. The results from estimation of production functions indicate that, in most advanced manufacturing sectors, spatial concentration has a negative impact on productivity in small plants and a positive effect in larger plants. Large plants likely benefit more from knowledge spillovers due to their higher levels of absorptive capacity.

Citation

Harris, R., Moffat, J., Evenhuis, E., Martin, R., Pike, A., & Sunley, P. (2019). Does Spatial Proximity Raise Firm Productivity? Evidence from British Manufacturing. Cambridge Journal of Regions, Economy and Society, 12(3), 467-487. https://doi.org/10.1093/cjres/rsz017

Journal Article Type Article
Acceptance Date Aug 21, 2019
Online Publication Date Oct 22, 2019
Publication Date Nov 30, 2019
Deposit Date Aug 26, 2019
Publicly Available Date Oct 22, 2021
Journal Cambridge Journal of Regions, Economy and Society
Print ISSN 1752-1378
Electronic ISSN 1752-1386
Publisher Cambridge Political Economy Society
Peer Reviewed Peer Reviewed
Volume 12
Issue 3
Pages 467-487
DOI https://doi.org/10.1093/cjres/rsz017
Public URL https://durham-repository.worktribe.com/output/1294503

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Copyright Statement
This is a pre-copyedited, author-produced PDF of an article accepted for publication in Cambridge journal of regions, economy and society following peer review. The version of record Harris, R , Moffat, J, Evenhuis, E, Martin, R Pike, A & Peter Sunley (2019). Does Spatial Proximity Raise Firm Productivity? Evidence from British Manufacturing. Cambridge Journal of Regions, Economy and Society 12(3): 467-487 is available online at: https://doi.org/10.1093/cjres/rsz017




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