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Vertical Industry Relations, Spillovers and Productivity: Evidence from Chilean Plants Author info | Abstract | Publisher info | Download info | Related research | Statistics Ricardo A. López () (Indiana University, Bloomington)
Jens Suedekum () (University of Konstanz and IZA)
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We use disaggregated data on Chilean plants, and the Chilean input-output table to examine the impact of agglomeration spillovers on total factor productivity (TFP). In common with previous studies, we find evidence of intra-industry spillovers, but no evidence of crossindustry spillovers in general. This picture changes, however, when we take vertical industry relations into account. We find important productivity spillover effects from plants in upstream industries. Interestingly, a similar effect cannot be found from plants in downstream industries. The number of plants in these sectors has no effect on firm level TFP, just as the number of plants in other industries that are neither important upstream suppliers nor downstream customers also has no effect. Agglomeration effects are stronger for small than for large plants.
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Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number
3047.
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Length: 28 pages
Date of creation: Sep 2007Date of revision:
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Keywords: vertical linkages ; agglomeration ; productivity ; Chile ; Other versions of this item:
Find related papers by JEL classification: R11 - Urban, Rural, and Regional Economics - - General Regional Economics - - - Analysis of Growth, Development, and Changes R15 - Urban, Rural, and Regional Economics - - General Regional Economics - - - Econometric and Input-Output Models; Other Methods O18 - Economic Development, Technological Change, and Growth - - Economic Development - - - Regional, Urban, and Rural Analyses O54 - Economic Development, Technological Change, and Growth - - Economywide Country Studies - - - Latin America; Caribbean
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