Spatial spillovers of agglomeration economies and productivity in the tourism industry: The case of the UK

Yoo Ri Kim, Allan M. Williams, Sangwon Park, Jason Li Chen

Research output: Journal article publicationJournal articleAcademic researchpeer-review

14 Citations (Scopus)

Abstract

This research investigates the direct and (indirect) spatial spillover effects of agglomeration economies on the productivity of the tourism industry. With increasing concerns about the persistence of low (labour) productivity in tourism across many developed economies, there is an urgent need to address this productivity challenge. Using major under-exploited UK microeconomic panel data, spatial econometric modelling is employed to estimate the effects of agglomeration economies on productivity. Findings reveal the significant effects of agglomeration economies on productivity within a specific region, but also significant spatial spillover effects across neighbouring regions, suggesting the possibility of productivity convergences. Competitive and complementary effects of agglomeration economies on productivity are identified.

Original languageEnglish
Article number104201
JournalTourism Management
Volume82
DOIs
Publication statusPublished - Feb 2021

Keywords

  • Agglomeration economies
  • Spatial econometrics
  • Spatial spillover effects
  • Tourism productivity

ASJC Scopus subject areas

  • Development
  • Transportation
  • Tourism, Leisure and Hospitality Management
  • Strategy and Management

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