Industrial Relocation Policy and Heterogeneous Plants Sorted by Productivity: Evidence from Japan
AbstractIn an economic geography model with firm heterogeneity, Baldwin and Okubo (2006) show that regional policies for promoting periphery development attract low-productivity firms and adversely affect the productivity gap within a country. This paper empirically examines their theoretical prediction by using plant-level data during active relocation policies in Japan. Our estimation results from plant-level regressions and propensity-score matching that are generally consistent with the theory. Compared to other regions, those targeted by policies, especially by industrial relocation subsidy programs, tend to have low-productivity plants.
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Bibliographic InfoPaper provided by Research Institute of Economy, Trade and Industry (RIETI) in its series Discussion papers with number 10016.
Length: 36 pages
Date of creation: Apr 2010
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- Toshihiro Okubo & Eiichi Tomiura, 2010. "Industrial relocation policy and heterogeneous plants sorted by productivity: Evidence from Japan," Discussion Paper Series DP2010-35, Research Institute for Economics & Business Administration, Kobe University.
- NEP-ALL-2010-04-24 (All new papers)
- NEP-EFF-2010-04-24 (Efficiency & Productivity)
- NEP-GEO-2010-04-24 (Economic Geography)
- NEP-INT-2010-04-24 (International Trade)
- NEP-URE-2010-04-24 (Urban & Real Estate Economics)
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- Toshihiro Okubo, 2011.
"Anti-agglomeration Subsidies with Heterogeneous Firms,"
Keio/Kyoto Joint Global COE Discussion Paper Series
2011-012, Keio/Kyoto Joint Global COE Program.
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- Toshihiro Okubo, 2011. "Anti-agglomeration Subsidies with Heterogeneous Firms," Discussion Paper Series DP2011-11, Research Institute for Economics & Business Administration, Kobe University.
- Okamuro, Hiroyuki & Nishimura, Junichi, 2011. "Management of Cluster Policies: Case Studies of Japanese, German, and French Bio-clusters," CEI Working Paper Series 2011-7, Center for Economic Institutions, Institute of Economic Research, Hitotsubashi University.
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