Productivity Distribution, Firm Heterogeneity, and Agglomeration: Evidence from firm-level data
AbstractThis paper empirically examines how productivity distributions of firms vary across regions based on Japan's manufacturing census data. We confirm the established finding of higher average productivity in core regions, but find that firm productivity is distributed with wide dispersions, especially in core regions. Our firm-level estimates demonstrate that the productivity distribution of firms tends to be noticeably left-skewed deviating from the normal distribution, especially in regions with weak market potential but also in agglomerated or urbanized regions. These findings suggest that agglomeration economies are likely to accommodate heterogeneous firms to co-exist in the same region.
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Bibliographic InfoPaper provided by Research Institute of Economy, Trade and Industry (RIETI) in its series Discussion papers with number 10017.
Length: 33 pages
Date of creation: Apr 2010
Date of revision:
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Other versions of this item:
- Toshihiro Okubo & Eiichi Tomiura, 2011. "Productivity distribution, firm heterogeneity, and agglomeration: Evidence from firm-level data," Discussion Paper Series DP2011-06, Research Institute for Economics & Business Administration, Kobe University.
- L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms
- R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
This paper has been announced in the following NEP Reports:
- NEP-ALL-2010-04-24 (All new papers)
- NEP-BEC-2010-04-24 (Business Economics)
- NEP-CSE-2010-04-24 (Economics of Strategic Management)
- NEP-EFF-2010-04-24 (Efficiency & Productivity)
- NEP-GEO-2010-04-24 (Economic Geography)
- NEP-INT-2010-04-24 (International Trade)
- NEP-SBM-2010-04-24 (Small Business Management)
- NEP-URE-2010-04-24 (Urban & Real Estate Economics)
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- OKUBO Toshihiro & Rikard FORSLID, 2010.
"Spatial Relocation with Heterogeneous Firms and Heterogeneous Sectors,"
10056, Research Institute of Economy, Trade and Industry (RIETI).
- Forslid, Rikard & Okubo, Toshihiro, 2010. "Spatial Relocation with Heterogeneous Firms and Heterogeneous Sectors," Research Papers in Economics 2010:17, Stockholm University, Department of Economics.
- Forslid, Rikard & Okubo, Toshihiro, 2010. "Spatial Relocation with Heterogeneous Firms and Heterogeneous Sectors," CEPR Discussion Papers 8117, C.E.P.R. Discussion Papers.
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