Agglomerations in the UK and the role of transport policy

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Publication Publication record
Title Agglomerations in the UK and the role of transport policy
Part of Project Eddington Transport Study‎
Publisher Publisher Department for Transport‎
Date Date December 2006‎
Summary, keywords and locations
Summary
  1. Theory tells us that firms locating in close proximity to other firms and workers generate productivity effects (agglomeration economies) which impact on the productivity of other firms located there. This paper sets out empirical evidence on the general relationship between the density of a location and the productivity of firms and uses new simulation analysis to explore where transport interventions might be most effective at delivering agglomeration benefits.
  2. We find evidence that some activities, particular certain manufacturing industries, benefit from localisation economies (benefits deriving mainly from locating close to similar firms) and cluster away from urban areas. Other activities, typically some service sectors, benefit from urbanisation economies (benefits from locating close to large employment centres) and these can be found in city centres.
  3. Evidence is found that transport interventions can lead to further agglomeration economies, but the extent to which it does relies on a number of area-specific factors: employment density, industrial composition and GDP. This is reflected in the simulations which indicate that there are no specific types or locations of agglomeration where transport interventions deliver consistently higher agglomeration benefits. Whilst simulations centred on or around large urban areas, in particular London, deliver substantial returns, the costs associated with securing the time savings will also be higher.
Keywords Keyword Economy‎ Keyword Planning‎ Keyword Public transport‎ Keyword Cities‎ Keyword Transport planning‎
Locations Location London‎ Location Manchester‎ Location Birmingham‎ Location Leeds‎ Location Tokyo‎ Location Paris‎ Location Frankfurt‎
How to find this document
Publication Dead link Dead as of 28 June 2026‎
Archive Archive Archived by The National Archives on 12 May 2009‎‎



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