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The Employment Performance of Established Manufacturing Industry in the Scottish New Towns

Industry Department for Scotland, Edinburgh

Manufacturing employment growth arises from either the opening of new units or the expansion of existing ones. The new towns in Scotland have attracted a relatively large share of employment in new openings, and particularly in incoming establishments. It is less clear whether, once established, manufacturing units have grown faster in the new towns than elsewhere. This paper uses establishment based data to investigate this issue. It concludes that units are unlikely to grow significantly faster in the new towns than in other parts of Scotland able to provide comparable financial incentives, sites and modern factory space. Net employment growth in an area is shown to be dependent on newly opened plants since established units have been decreasing their employment.

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