Skew productivity distributions and agglomeration: Evidence from plant-level data
AbstractThis paper empirically examines how the shapes of plant productivity distributions vary across regions based on Japan's manufacturing census. We focus on the skewness to examine the asymmetry by estimating the gamma distribution at the plant level. By linking the estimated shape parameters with economic geography variables, we find that the productivity distribution tends to be significantly left-skewed, especially in cores, regions with diversified industrial compositions, regions with weak market potential, and in agglomerated industries. These findings suggest that agglomeration economies are likely to accommodate heterogeneous plants with wide ranges of productivities.
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Bibliographic InfoPaper provided by Keio/Kyoto Joint Global COE Program in its series Keio/Kyoto Joint Global COE Discussion Paper Series with number 2012-020.
Length: 31 pages
Date of creation: Nov 2012
Date of revision:
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This paper has been announced in the following NEP Reports:
- NEP-ALL-2012-12-06 (All new papers)
- NEP-EFF-2012-12-06 (Efficiency & Productivity)
- NEP-GEO-2012-12-06 (Economic Geography)
- NEP-URE-2012-12-06 (Urban & Real Estate Economics)
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