Glass, A.J. orcid.org/0000-0002-5984-7666 and Kenjegalieva, K. (2024) The role of inefficiency in a productivity puzzle: regional evidence for Great Britain. Journal of Regional Science, 64 (4). pp. 1287-1322. ISSN 0022-4146
Abstract
From around the 2008 crisis there has been a marked slowdown in UK productivity. This has been referred to as a productivity puzzle as there is no consensus on the key explanations for this slowdown. Using data for all the 168 International Territorial Level 3 areas in Great Britain (2004–2020), we make two empirical contributions to the literature on this puzzle. First, we are the first to analyze this productivity puzzle using a stochastic frontier model to account for technical inefficiency. Second, to aid policymakers we uncover the areas that represent spatial total factor productivity (TFP) growth hubs, spokes, leaders and followers. Of the components of TFP growth (growth rates of technical change, returns to scale and efficiency), we find that Britain's productivity slowdown can be more specifically described as a rise in inefficiency.
Metadata
Item Type: | Article |
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Authors/Creators: |
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Copyright, Publisher and Additional Information: | © 2024 The Authors. Journal of Regional Science published by Wiley Periodicals LLC. This is an open access article under the terms of the Creative Commons Attribution License (http://creativecommons.org/licenses/by/4.0/), which permits use, distribution and reproduction in any medium, provided the original work is properly cited. |
Keywords: | Persistent and transient technical efficiencies; Total factor productivity; Dynamic spatial stochastic frontier analysis; Benchmarking; UK productivity puzzle |
Dates: |
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Institution: | The University of Sheffield |
Academic Units: | The University of Sheffield > Faculty of Social Sciences (Sheffield) > Management School (Sheffield) |
Depositing User: | Symplectic Sheffield |
Date Deposited: | 08 Apr 2024 14:56 |
Last Modified: | 15 Nov 2024 16:12 |
Status: | Published |
Publisher: | Wiley |
Refereed: | Yes |
Identification Number: | 10.1111/jors.12702 |
Open Archives Initiative ID (OAI ID): | oai:eprints.whiterose.ac.uk:211248 |