The author examines the dynamics of manufacturing-employment change in thirteen European Union countries between 1978 and 1996, mainly through the utilisation of shift-share techniques. Despite the momentum that European integration gained over this period, the key finding is that the geography of manufacturing employment has remained almost intact. Processes operating at the European scale appear to have the largest impact on labour outcomes in each member state, while there is little deviation from the widespread declining trends. Spatial stability is reinforced even further through the homogeneity of several national industrial structures. In addition, the moderate increase in the industrial specialisation of the participating economies, and the localisation tendencies of a few traditional subsectors, pose little if any threat to the stability of the present map of manufacturing distribution. This evidence suggests that, contrary to some political rhetoric, the integration process has not, so far at least, adversely affected the relative competitiveness of manufacturing either in peripheral or in core countries.
IntroductionThe evolution of productivity is a key aspect of regional or national economic performance. In the long run, high rates of output and, ceteris paribus, growth in income per capita can be sustained only through improvements in the way that production inputs are utilised. Inevitably, then, spatial differences in productivity levels and trends are particularly important for several reasons. The close links with other economic variables mean that productivity disparities are usually indicative of additional inequalities in a wide range of parameters, including fixed capital accumulation, utilised technology, and labour-force skills. Furthermore, if pressed, the competitiveness of an economy of any given scale is largely reflected in efficiency gains. Productivity is regarded by far a better measure of international competitiveness than say trade balance (Dollar and Wolff, 1993). Another major issue concerns the spatial dynamics of productivity change. Several studies have reported that a convergence process between advanced and lagging economies is underway at
During the past few years there has been a growing consensus in the literature that intangible assets represent a major source of productivity growth. Intangibles facilitate the accumulation of knowledge and information via learning and innovation, allowing, in this way, modern economies to improve the efficiency with which they utilise their resources. Nonetheless, despite the proliferation of studies that investigate the territorial impact of intangibles (variously defined), the full effect of these assets on regional productivity dynamics remains elusive. National Accounts still treat most of what can be considered intangibles as intermediate expenditure entailing that they are largely excluded from conventional measures of gross value added (GVA) and investment. The present paper attempts to tackle this shortcoming not only by including intangibles as capital in the aggregate production function, but also by employing GVA data that are adjusted for intangibles as output. The aim is to investigate the role of intangible assets on the evolution of regional productivity disparities in Great Britain during the period 1995-2004. The analysis considers the spatial effects of intangibles on both partial productivity measures and total factor productivity levels, while the regional figures are also scrutinised for the possible presence of (J-convergence and /3-convergence trends during this time.
Several studies in economic geography have attempted to understand the spatial implications of sunk costs. In this paper it is argued that, although these efforts are most valuable, issues remain that deserve closer examination. The first begs the question whether the introduction of this concept into economic geography has occurred with due regard to the contexts set by the academic fields where the notion originates. If this is not the case, then perhaps some doubt should be cast on the suitability of the imported definition and theoretical frameworks for the geographical purposes envisaged. The second issue concerns the regional dimension of sunk costs, given that most of the literature focuses on their importance at the corporate level. A final concern relates to the empirical measurement of these costs. These issues serve as the starting point of the formulation of an alternative view of sunk costs. It is suggested here that the issue of sunk costs is, in the final analysis, a problem of realizing value. Concepts of fixed capital measurement and depreciation offer the basis of an alternative theoretical framework for conceptualizing sunkness.
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