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  • This work contains statistical data from ONS, which is Crown copyright and reproduced with the permission of the controller of HMSO and Queen's Printer for Scotland. The use of the ONS statistical data in this work does not imply the endorsement of the ONS in relation to the interpretation or analysis of the statistical data. This work uses research data sets, which may not exactly reproduce National Statistics aggregates. It was also carried out as part of an ESRC grant (RES-591–28-0001) awarded to the Spatial Economics Research Centre, based at the London School of Economics.


ABSTRACT This paper examines the determinants of total factor productivity (TFP) using a GB plant-level data set. The main findings relate to whether spatial spillovers and “place” effects are important: plants located in cities generally perform better than plants in the same region outside of these cities; but with the exception of Bristol, no city has significantly higher TFP levels than the South East. This suggests that spatial externalities associated with city location are not as important as the benefits of being situated in the South East region.