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Productivity Improvement in the Specialized Industrial Clusters: The Case of the Japanese Silk-Reeling Industry

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  • Arimoto, Yutaka
  • Nakajima, Kentaro
  • Okazaki, Tetsuji

Abstract

We examine two sources of productivity improvement in the specialized industrial clusters. Agglomeration improves the productivity of each plant through positive externalities, shifting plant-level productivity distribution to the right. Selection expels less productive plants through competition, truncating distribution on the left. By analyzing the data of the early twentieth century Japanese silk-reeling industry, we find no evidence confirming a right shift in the distribution in clusters or that agglomeration promotes faster productivity growth. These findings imply that the plant-selection effect was the source of higher productivity in the Japanese silk-reeling clusters.

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File URL: http://hermes-ir.lib.hit-u.ac.jp/rs/bitstream/10086/22181/1/No16-dp.pdf
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Bibliographic Info

Paper provided by Institute of Economic Research, Hitotsubashi University in its series PRIMCED Discussion Paper Series with number 16.

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Length: 32 p.
Date of creation: Dec 2011
Date of revision:
Handle: RePEc:hit:primdp:16

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Keywords: Economic geography; Heterogeneous firms; Selection; Productivity;

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References

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  1. Antonio Ciccone & Robert E. Hall, 1996. "Productivity and the Density of Economic Activity," NBER Working Papers 4313, National Bureau of Economic Research, Inc.
  2. Behrens, Kristian & Mion, Giordano & Murata, Yasusada & Südekum, Jens, 2009. "Trade, wages, and productivity," CEPR Discussion Papers 7369, C.E.P.R. Discussion Papers.
  3. Gregory Corcos & Massimo Del Gatto & Giordano Mion & Gianmarco I.P. Ottaviano, 2012. "Productivity and Firm Selection: Quantifying the ‘New’ Gains from Trade," Economic Journal, Royal Economic Society, vol. 122(561), pages 754-798, 06.
  4. Pierre‐Philippe Combes & Gilles Duranton & Laurent Gobillon & Diego Puga & Sébastien Roux, 2012. "The Productivity Advantages of Large Cities: Distinguishing Agglomeration From Firm Selection," Econometrica, Econometric Society, vol. 80(6), pages 2543-2594, November.
  5. Chad Syverson, 2001. "Market Structure and Productivity: A Concrete Example," Working Papers 01-06, Center for Economic Studies, U.S. Census Bureau.
  6. Melitz, Marc J, 2002. "The Impact of Trade on Intra-Industry Reallocations and Aggregate Industry Productivity," CEPR Discussion Papers 3381, C.E.P.R. Discussion Papers.
  7. James Levinsohn & Amil Petrin, 2000. "Estimating Production Functions Using Inputs to Control for Unobservables," NBER Working Papers 7819, National Bureau of Economic Research, Inc.
  8. Richard Baldwin & Toshihiro Okubo, 2005. "Heterogeneous Firms, Agglomeration and Economic Geography: Spatial Selection and Sorting," NBER Working Papers 11650, National Bureau of Economic Research, Inc.
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Cited by:
  1. Antonio Accetturo & Valter Di Giacinto & Giacinto Micucci & Marcello Pagnini, 2013. "Geography, Productivity and Trade: Does Selection Explain Why Some Locations Are More Productive than Others?," Working Paper Series 24_13, The Rimini Centre for Economic Analysis.
  2. Valter Di Giacinto & Matteo Gomellini & Giacinto Micucci & Marcello Pagnini, 2012. "Mapping local productivity advantages in Italy: industrial districts, cities or both?," Temi di discussione (Economic working papers) 850, Bank of Italy, Economic Research and International Relations Area.
  3. Tomoko Hashino & Keijiro Otsuka, 2012. "Hand looms, power looms, and changing production organizations: the case of the Kiryu weaving district in the early 20th century Japan," Economic History Working Papers 41659, London School of Economics and Political Science, Department of Economic History.

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