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

Ricardo López and Jens Südekum
Authors registered in the RePEc Author Service: Jens Suedekum ()

Journal of Regional Science, 2009, vol. 49, issue 4, 721-747

Abstract: 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.

Date: 2009
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https://doi.org/10.1111/j.1467-9787.2009.00631.x

Related works:
Working Paper: Vertical Industry Relations, Spillovers and Productivity: Evidence from Chilean Plants (2007) Downloads
Working Paper: Vertical Industry Relations, Spillovers and Productivity: Evidence from Chilean Plants (2007) Downloads
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