Location Proximity and Productivity Spillovers: The Case of Korean Manufacturing Plants
Knowledge spillovers have been recognized as an important source of innovation and economic growth in both industry and firm-level data. A firm may reap benefits by locating near other firms in the same geographical region. In this paper, we examine how physical proximity influences a firm's future productivity and its survival possibility. Our results indicate that a firm located in a region with a higher median total factor productivity (TFP) gains higher productivity from other firms in the same region. One possible explanation is that such a firm has more opportunity to access superior external knowledge and to produce more new ideas. Our results also indicate these productivity-enhancing characteristics do not seem to be industry-specific. Finally, we find that high productivity firms are the only significant sources of knowledge spillovers, suggesting that firms benefit most from combining their internal knowledge with the external knowledge of neighboring firms with high TFP on average. Â© 2015 The Earth Institute at Columbia University and the Massachusetts Institute of Technology
Volume (Year): 14 (2015)
Issue (Month): 1 (March)
|Contact details of provider:|| Web page: http://mitpress.mit.edu/journals/|
|Order Information:||Web: http://www.mitpressjournals.org/loi/asep|
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Ariel Pakes & Paul McGuire, 1994.
"Computing Markov-Perfect Nash Equilibria: Numerical Implications of a Dynamic Differentiated Product Model,"
RAND Journal of Economics,
The RAND Corporation, vol. 25(4), pages 555-589, Winter.
- Ariel Pakes & Paul McGuire, 1992. "Computing Markov Perfect Nash Equilibria: Numerical Implications of a Dynamic Differentiated Product Model," NBER Technical Working Papers 0119, National Bureau of Economic Research, Inc.
- Ariel Pakes & Paul McGuire, 1992. "Computing Markov perfect Nash equilibria: numerical implications of a dynamic differentiated product model," Discussion Paper / Institute for Empirical Macroeconomics 58, Federal Reserve Bank of Minneapolis.
- Sofronis K. Clerides & Saul Lach & James R. Tybout, 1998. "Is Learning by Exporting Important? Micro-Dynamic Evidence from Colombia, Mexico, and Morocco," The Quarterly Journal of Economics, Oxford University Press, vol. 113(3), pages 903-947.
- Sofronis Clerides & Saul Lach & James Tybout, "undated". "Is "Learning-by-Exporting" Important? Micro-dynamic Evidence from Colombia, Mexico, and Morocco," Finance and Economics Discussion Series 1996-30, Board of Governors of the Federal Reserve System (U.S.).
- Sofronis Clerides & Saul Lach & James Tybout, 1996. "Is "Learning-by-Exporting" Important? Micro-Dynamic Evidence from Colombia, Mexico and Morocco," NBER Working Papers 5715, National Bureau of Economic Research, Inc.
- Sofronis Clerides & Saul Lach & James Tybout, 1996. "Is "learning-by-exporting" important? Micro-dynamic evidence from Colombia, Mexico and Morocco," Finance and Economics Discussion Series 96-30, Board of Governors of the Federal Reserve System (U.S.).
- Bee Yan Aw & Mark J. Roberts & Tor Winston, 2007. "Export Market Participation, Investments in R&D and Worker Training, and the Evolution of Firm Productivity," The World Economy, Wiley Blackwell, vol. 30(1), pages 83-104, 01.
- Baptista, Rui & Swann, Peter, 1998. "Do firms in clusters innovate more?," Research Policy, Elsevier, vol. 27(5), pages 525-540, September.
- Basant, Rakesh & Fikkert, Brian, 1996. "The Effects of R&D, Foreign Technology Purchase, and Domestic and International Spillovers on Productivity in Indian Firms," The Review of Economics and Statistics, MIT Press, vol. 78(2), pages 187-199, May.
- Aw & Song, 2013. "Firm's Choice between Export and R&D and its Effect on the Firm's Productivity and Survival," Global Economic Review, Taylor & Francis Journals, vol. 42(3), pages 291-310, September.
- James D. Adams & Adam B. Jaffe, 1996. "Bounding the Effects of R&D: An Investigation Using Matched Establishment-Firm Data," RAND Journal of Economics, The RAND Corporation, vol. 27(4), pages 700-721, Winter.
- James D. Adams & Adam B. Jaffe, 1996. "Bounding the Effects of R&D: An Investigation Using Matched Establishment-Firm Data," NBER Working Papers 5544, National Bureau of Economic Research, Inc.
- Hopenhayn, Hugo A, 1992. "Entry, Exit, and Firm Dynamics in Long Run Equilibrium," Econometrica, Econometric Society, vol. 60(5), pages 1127-1150, September. Full references (including those not matched with items on IDEAS)
When requesting a correction, please mention this item's handle: RePEc:tpr:asiaec:v:14:y:2015:i:1:p:104-118. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Kristin Waites)
If references are entirely missing, you can add them using this form.