Local Product Relatedness and Export Behavior at the Firm Level in Japan (Japanese)

Kazunobu Hayakawa and Toshiyuki Matsuura

Discussion Papers (Japanese) from Research Institute of Economy, Trade and Industry (RIETI)

Abstract: This study examines the relationship between local product relatedness and the extensive margin and intensive margin of export, namely the decision to start exporting and amount exported at plant-level, by using the panel dataset of Japanese Census of Manufacture in 2001, 2007, and 2014. First, we calculate the density of bilateral product relatedness and then construct the region-product-level measure for the links between the product relatedness and the local pattern of specialization. We show that local product relatedness has a positive impact on the extensive margin, but not the intensive margin of export at plant-level. This result suggests that firms located in regions with higher local product relatedness are more likely to start exporting.

Pages: 27 pages
Date: 2020-09
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Persistent link: https://EconPapers.repec.org/RePEc:eti:rdpsjp:20036

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