Assessing Agglomeration Impacts in Auckland: Phase 2

Agglomeration effects, or the productivity benefits that stem from high employment densities, are being achieved in Auckland's central business district (CBD). This provides support for Auckland's economic transformation. However, questions remain as to the nature of these effects, and whether other factors may help to explain the CBD's observed productivity premium. Using 2001 census area unit data, this paper examines to what extent the CBD's productivity advantages can be explained by sectoral composition and educational attainment. The major finding is that while sectoral composition and educational attainment appears to contribute to the CBD's strong productivity performance, employment density still provides the major impetus. However, to more effectively assess the robustness of the relationships presented in this paper, further work is required.