Is there a rural-urban divide? Location and productivity of UK manufacturing

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Title: Is there a rural-urban divide? Location and productivity of UK manufacturing
Authors: Rizov, Marian
Walsh, Patrick P.
Permanent link: http://hdl.handle.net/10197/2681
Date: Aug-2009
Abstract: We compute the productivity gaps in manufacturing industries by urban, rural less sparse and rural sparse locations in the UK. This is done by using firm-specific total factor productivities, which are estimated by a semi-parametric algorithm within 4-digit manufacturing industries using FAME data over the period 1994-2001, by each location. We analyse the productivity differentials across locations by decomposing them into firm differences within the same industry and by differences that are explained by industry composition effects. Our analysis indicates that at the end of twentieth century a rural-urban divide in manufacturing productivity still remains but there is a tendency of convergence between rural and urban location categories. Even though industry productivity is different by location, industry composition effects are positively correlated with industry productivity by location suggesting that locations with high productivity are also characterised by industrial structures with higher productivity.
Funding Details: Not applicable
Type of material: Working Paper
Publisher: University College Dublin. Geary Institute
Keywords: Total factor productivity;Structural estimation;Rural-urban divides;UK manufacturing
Subject LCSH: Industrial productivity--Regional disparities
Manufacturing industries--Great Britain
Language: en
Status of Item: Not peer reviewed
Appears in Collections:Geary Institute Working Papers

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