Vertical Industry Relations, Spillovers, And Productivity: Evidence From Chilean Plants
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 for intraindustry spillovers, but none for general cross-industry spillovers. This picture changes when we take vertical industry relations into account. There are important productivity spillovers 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 plant-level TFP, just as the number of plants in other industries that are neither important upstream suppliers nor downstream customers also has no effect. Copyright (c) 2009, Wiley Periodicals, Inc.
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Volume (Year): 49 (2009)
Issue (Month): 4 ()
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