Product Switching and Firm Performance in Japan - Empirical Analysis Based on the Census of Manufacturers

Atsushi Kawakami () and Tsutomu Miyagawa
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Tsutomu Miyagawa: Professor, Faculty of Economics, Gakushuin University

Public Policy Review, 2013, vol. 9, issue 2, 287-314

Abstract: Following Bernard, Redding and Schott (2010), we have constructed product and firm level data on Japanese manufacturing firms using the Census of Manufacturers. Our empirical analysis based on the constructed data shows that multiple-product firms perform better than single-product firms and their labor productivity growth rates are higher. Empirical studies at the industry level show that an unregulated, competitive environment stimulates product switching. At the firm level, product switching behavior improves firm performance, including employment, while the firms that reduce the number of their products see a decline in labor productivity, due to output reduction exceeding the magnitude of the reduction in employment.

Keywords: Entry; Exit; Multiple-Product Firm; Product Switching; Labor Productivity; TFP CPropensity Score Matching Model (search for similar items in EconPapers)
JEL-codes: L11 L21 L25 L60 (search for similar items in EconPapers)
Date: 2013
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

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