Vertical Industry Relations, Spillovers and Productivity: Evidence from Chilean Plants

Ricardo López Rago and Jens Suedekum ()
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Jens Suedekum: Heinrich Heine University Düsseldorf

No 3047, IZA Discussion Papers from Institute of Labor Economics (IZA)

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 of intra-industry spillovers, but no evidence of cross-industry spillovers in general. This picture changes, however, when we take vertical industry relations into account. We find important productivity spillover effects 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 firm level TFP, just as the number of plants in other industries that are neither important upstream suppliers nor downstream customers also has no effect. Agglomeration effects are stronger for small than for large plants.

Keywords: productivity; agglomeration; vertical linkages; Chile (search for similar items in EconPapers)
JEL-codes: O18 O54 R11 R15 (search for similar items in EconPapers)
Pages: 28 pages
Date: 2007-09
New Economics Papers: this item is included in nep-eff, nep-geo and nep-ure
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Published - published in: Journal of Regional Science, 2009, 49 (4), 721-747

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Related works:
Journal Article: VERTICAL INDUSTRY RELATIONS, SPILLOVERS, AND PRODUCTIVITY: EVIDENCE FROM CHILEAN PLANTS* (2009)
Working Paper: Vertical Industry Relations, Spillovers and Productivity: Evidence from Chilean Plants (2007)
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