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Spatial externalities, relatedness and sector employment growth in Great Britain

[journal article]

Bishop, Paul; Gripaios, Peter

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Abstract This paper examines the impact of externalities on employment growth in sub-regions of Great Britain by estimating OLS and maximum likelihood spatial models at the 2-digit level for 23 sectors. Issues arising from relatedness, sector differences, competition, cross-boundary spillovers and spatial autocorrelation are explicitly addressed. Results indicate that specialisation has a generally negative impact on growth whilst the impact of diversity is heterogeneous across sectors and strong local competition has a typically positive impact. The results question the merits of policies primarily aimed at promoting regional specialisation and suggest that diversity, local competition and sector heterogeneity are important policy issues.
Classification Labor Market Research; Area Development Planning, Regional Research
Free Keywords spatial externalities; employment growth; Great Britain
Document language English
Publication Year 2010
Page/Pages p. 443-454
Journal Regional Studies, 44 (2010) 4
Status Postprint; peer reviewed
Licence PEER Licence Agreement (applicable only to documents from PEER project)