TY - JOUR
T1 - Regional variations in exporters’ productivity premium
T2 - Theory and evidence
AU - Okubo, Toshihiro
AU - Tomiura, Eiichi
N1 - Funding Information:
This research is financially supported by the Research Institute of Economy, Trade and Industry (RIETI) and Grant‐in‐Aid for Scientific Research (Grant Nos. 17K03677, 16K03652, 25780169, 26220503, 18H03637). Access to plant‐level data is arranged by RIETI.
Funding Information:
This paper is a substantially revised version of a discussion paper previously circulated as Okubo and Tomiura (2013) “Regional variations in productivity premium of exporters: Evidence from Japanese plant‐level data.” We deeply appreciate the valuable comments by the anonymous referee. In addition, we thank Richard Baldwin for helping us draft an earlier version and Eric Strobl for kindly providing some useful estimation programs. We also acknowledge the comments by the participants of the seminars or conferences held at University of Hong Kong, Hitotsubashi University, Kobe University, and Singapore National University. This research is financially supported by the Research Institute of Economy, Trade and Industry (RIETI) and Grant‐in‐Aid for Scientific Research [Grant numbers 17K03677, 16K03652, 25780169, 26220503, 18H03637]. Access to plant‐level data is arranged by RIETI.
Funding Information:
Funding information This research is financially supported by the Research Institute of Economy, Trade and Industry (RIETI) and Grant-in-Aid for Scientific Research (Grant Nos. 17K03677, 16K03652, 25780169, 26220503, 18H03637). Access to plant-level data is arranged by RIETI. This paper is a substantially revised version of a discussion paper previously circulated as Okubo and Tomiura () “Regional variations in productivity premium of exporters: Evidence from Japanese plant-level data.” We deeply appreciate the valuable comments by the anonymous referee. In addition, we thank Richard Baldwin for helping us draft an earlier version and Eric Strobl for kindly providing some useful estimation programs. We also acknowledge the comments by the participants of the seminars or conferences held at University of Hong Kong, Hitotsubashi University, Kobe University, and Singapore National University. This research is financially supported by the Research Institute of Economy, Trade and Industry (RIETI) and Grant-in-Aid for Scientific Research [Grant numbers 17K03677, 16K03652, 25780169, 26220503, 18H03637]. Access to plant-level data is arranged by RIETI.
Publisher Copyright:
© 2019 John Wiley & Sons Ltd
PY - 2019/8
Y1 - 2019/8
N2 - The international trade literature confirms that the average productivity of exporters is higher than that of nonexporters, while economic geography studies establish that urban firms tend to be more productive than rural ones. By introducing region-specific transportation costs in a Melitz-type heterogeneous-firm trade model, the theory predicts that the minimum threshold productivity level for export is higher but that for survival by serving the local market is lower in the periphery region than in the core. Using Japanese plant-level panel data, we find evidence supporting the theoretical prediction that exporters in the peripheral regions, especially those distant from the core, have large productivity premiums.
AB - The international trade literature confirms that the average productivity of exporters is higher than that of nonexporters, while economic geography studies establish that urban firms tend to be more productive than rural ones. By introducing region-specific transportation costs in a Melitz-type heterogeneous-firm trade model, the theory predicts that the minimum threshold productivity level for export is higher but that for survival by serving the local market is lower in the periphery region than in the core. Using Japanese plant-level panel data, we find evidence supporting the theoretical prediction that exporters in the peripheral regions, especially those distant from the core, have large productivity premiums.
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U2 - 10.1111/roie.12398
DO - 10.1111/roie.12398
M3 - Article
AN - SCOPUS:85062770493
SN - 0965-7576
VL - 27
SP - 803
EP - 821
JO - Review of International Economics
JF - Review of International Economics
IS - 3
ER -
