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Productivity distribution, firm heterogeneity, and agglomeration: Evidence from firm-level data

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  • Toshihiro Okubo

    (Research Institute for Economics & Business Administration (RIEB), Kobe University, Japan)

  • Eiichi Tomiura

    (Department of Economics, Yokohama National University, Japan)

Abstract

This paper empirically examines how productivity distributions of firms vary across regions based on Japan's manufacturing census data. We 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 that co-exist in the same region.

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File URL: http://www.rieb.kobe-u.ac.jp/academic/ra/dp/English/DP2011-06.pdf
File Function: First version, 2011
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Bibliographic Info

Paper provided by Research Institute for Economics & Business Administration, Kobe University in its series Discussion Paper Series with number DP2011-06.

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Length: 32 pages
Date of creation: Feb 2011
Date of revision:
Handle: RePEc:kob:dpaper:dp2011-06

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Related research

Keywords: Agglomeration; Productivity; Gamma distribution; Heterogeneity; Firm-level data;

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Cited by:
  1. 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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