Wednesday, September 06, 2006

Proximity and Productivity

Martin Wolf:

"Professor [Tony] Venables [of the London School of Economics] notes copious research on the gains from proximity: other things being equal, moving from a city of 100,000 to one of 10m raises the productivity of all factors of production by 40 per cent."

Wolf cites the following: Shifts in economic geography and their causes, www.KansasCityFed.org]

Source: "We must act to share the gains with globalisation's losers", Financial Times, 6 September 2006

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