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Skew productivity distributions and agglomeration: Evidence from plant-level data

Author

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  • Toshihiro Okubo

    (Faculty of Economics, Keio University)

  • Eiichi Tomiura

    (Department of Economics, Yokohama National University)

Abstract

This 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.

Suggested Citation

  • Toshihiro Okubo & Eiichi Tomiura, 2012. "Skew productivity distributions and agglomeration: Evidence from plant-level data," Keio/Kyoto Joint Global COE Discussion Paper Series 2012-020, Keio/Kyoto Joint Global COE Program.
    • Handle: RePEc:kei:dpaper:2012-020
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    2. Toshihiro Okubo & Eiichi Tomiura, 2019. "Regional variations in exporters’ productivity premium: Theory and evidence," Review of International Economics, Wiley Blackwell, vol. 27(3), pages 803-821, August.
    3. Kozo Kiyota & Toshiyuki Matsuura & Lionel Nesta, 2019. "What'S Behind The Figures? Quantifying The Cross‐Country Exporter Productivity Gap," Economic Inquiry, Western Economic Association International, vol. 57(3), pages 1256-1271, July.
    4. Yang, Yang & Mukhopadhaya, Pundarik & Yu, Zhuangxiong, 2020. "Relationship between city size and firm productivity – A new interpretation using the Chinese experience," Economic Modelling, Elsevier, vol. 93(C), pages 546-558.
    5. Kozo KIYOTA & Toshiyuki MATSUURA & Lionel NESTA, 2016. "Understanding the Cross-country Productivity Gap of Exporters," Discussion papers 16019, Research Institute of Economy, Trade and Industry (RIETI).
    6. Igor Bagayev & Ronald B. Davies, 2017. "The Impact of Protection on Observed Productivity Distributions," Working Papers 201705, School of Economics, University College Dublin.
    7. Kozo Kiyota & Toshiyuki Matsuura & Lionel Nesta, 2019. "On Export Premia," GREDEG Working Papers 2019-10, Groupe de REcherche en Droit, Economie, Gestion (GREDEG CNRS), Université Côte d'Azur, France, revised Mar 2019.
    8. Forslid, Rikard & Okubo, Toshihiro, 2023. "Trade, location, and multi-product firms," Regional Science and Urban Economics, Elsevier, vol. 100(C).
    9. Ito, Banri & Xu, Zhaoyuan & Yashiro, Naomitsu, 2015. "Does agglomeration promote internationalization of Chinese firms?," China Economic Review, Elsevier, vol. 34(C), pages 109-121.
    10. Chun‐Yu Ho & Yue Sheng, 2022. "Productivity advantage of large cities for creative industries," Papers in Regional Science, Wiley Blackwell, vol. 101(6), pages 1289-1306, December.
    11. Rutzer, Christian, 2014. "A Theory of Trade Liberalization and Innovations with Heterogeneous Firms," Working papers 2014/02, Faculty of Business and Economics - University of Basel.

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