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 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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Bibliographic InfoPaper provided by Research Institute for Economics & Business Administration, Kobe University in its series Discussion Paper Series with number DP2011-06.
Length: 32 pages
Date of creation: Feb 2011
Date of revision:
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Agglomeration; Productivity; Gamma distribution; Heterogeneity; Firm-level data;
Other versions of this item:
- OKUBO Toshihiro & TOMIURA Eiichi, 2010. "Productivity Distribution, Firm Heterogeneity, and Agglomeration: Evidence from firm-level data," Discussion papers 10017, Research Institute of Economy, Trade and Industry (RIETI).
- 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-2011-03-26 (All new papers)
- NEP-BEC-2011-03-26 (Business Economics)
- NEP-EFF-2011-03-26 (Efficiency & Productivity)
- NEP-GEO-2011-03-26 (Economic Geography)
- NEP-INT-2011-03-26 (International Trade)
- NEP-URE-2011-03-26 (Urban & Real Estate Economics)
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- 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.
- OKUBO Toshihiro & Rikard FORSLID, 2010. "Spatial Relocation with Heterogeneous Firms and Heterogeneous Sectors," Discussion papers 10056, Research Institute of Economy, Trade and Industry (RIETI).
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