Sectoral Trends and British Regional Economic Growth – A Spatial Econometric Perspective

Abstract

This paper aims to look beneath the surface of British sub-regional aggregate GVA growth over the period 1995-2004, by examining how the differing growth dynamics of the secondary and services sectors have influenced the overall regional growth process. A spatial econometric analysis is undertaken which tests regional secondary, services and aggregate real GVA per capita for absolute and conditional convergence at the NUTS 3 level as well as on a set of functional economic areas, constructed using NUTS 3 level commuter flow data. A
number of explanatory factors influencing secondary, services, and aggregate regional economic growth are also identified.