Industry Linkages from Joint Production

Xiang Ding

Working Papers from U.S. Census Bureau, Center for Economic Studies

Abstract: I develop a theory of joint production to quantify aggregate economies of scope. In US manufacturing data, increased export demand in one industry raises a firm’s sales in its other industries that share knowledge inputs like R&D and software. I estimate that knowledge inputs contribute to economies of scope through their scalability and partial non-rivalry within the firm. On average a 10 percent increase in output in one industry lowers prices in other industries by 0.4 percent. Such economies of scope manifest disproportionately among knowledge proximate industries and imply large spillover impacts of recent US-China trade policy on producer prices.

Pages: 84 pages
Date: 2023-01
New Economics Papers: this item is included in nep-com, nep-ind and nep-int
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Citations: View citations in EconPapers (2)

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https://www2.census.gov/library/working-papers/2023/adrm/ces/CES-WP-23-02.pdf First version, 2023 (application/pdf)

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Persistent link: https://EconPapers.repec.org/RePEc:cen:wpaper:23-02

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