VERTICAL INDUSTRY RELATIONS, SPILLOVERS, AND PRODUCTIVITY: EVIDENCE FROM CHILEAN PLANTS

ABSTRACT 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 spillover...

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Bibliographic Details
Published inJournal of regional science Vol. 49; no. 4; pp. 721 - 747
Main Authors López, Ricardo A., Südekum, Jens
Format Journal Article
LanguageEnglish
Published Malden, USA Blackwell Publishing Inc 01.10.2009
Wiley Blackwell
Blackwell Publishers Inc
SeriesJournal of Regional Science
Subjects
Agglomeration
Chile
Economic geography
Economic impact
Empirical research
Factories
Knowledge transfer
Location of industry
Productivity
Spillovers
Studies
Total factor productivity
Verticality
Chile
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Summary:ABSTRACT 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.
Bibliography:ark:/67375/WNG-2M0J6HX9-8
The authors thank two anonymous referees, workshop participants in Rotterdam, Kristian Behrens, Steven Brakman, Gerhard Glomm, Kim Huynh, Andrea Lamorghese, Charles van Marrewijk, Mark Partridge, Frederic Robert-Nicoud, Will Strange, Jacques Thisse, and seminar participants at the NARSC Annual Meetings in Savannah (GA) for helpful comments and discussions. The usual disclaimer applies. Parts of this paper were written while Südekum was visiting Indiana University, Bloomington. We acknowledge the hospitality of this institution. This work was supported by a grant from the Ministry of Science, Research, and the Arts of Baden-Württemberg (Az: 21-655.042-5-2/1) to Jens Südekum.
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ArticleID:JORS631
The authors thank two anonymous referees, workshop participants in Rotterdam, Kristian Behrens, Steven Brakman, Gerhard Glomm, Kim Huynh, Andrea Lamorghese, Charles van Marrewijk, Mark Partridge, Frederic Robert‐Nicoud, Will Strange, Jacques Thisse, and seminar participants at the NARSC Annual Meetings in Savannah (GA) for helpful comments and discussions. The usual disclaimer applies. Parts of this paper were written while Südekum was visiting Indiana University, Bloomington. We acknowledge the hospitality of this institution. This work was supported by a grant from the Ministry of Science, Research, and the Arts of Baden‐Württemberg (Az: 21‐655.042‐5‐2/1) to Jens Südekum.
ObjectType-Article-2
SourceType-Scholarly Journals-1
ObjectType-Feature-1
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ISSN:0022-4146
1467-9787
DOI:10.1111/j.1467-9787.2009.00631.x