Market Size, Linkages, and Productivity: A Study Of Japanese Regions

David Weinstein and Donald Davis ()

No DP2003-53, WIDER Working Paper Series from World Institute for Development Economic Research (UNU-WIDER)

Abstract: One account of spatial concentration focuses on productivity advantages arising from market size. We investigate this for 40 regions of Japan. Our results identify important effects of a region's own size, as well as cost linkages between producers and suppliers of inputs. Productivity links to a more general form of 'market potential' or Marshall-Arrow-Romer externalities do not appear to be robust in our data. The effects we identify are economically quite important, accounting for a substantial portion of cross-regional productivity differences.

Keywords: Gross national product; Productivity; Regional economics (search for similar items in EconPapers)
Date: 2003
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Citations: View citations in EconPapers (6)

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Working Paper: Market Size, Linkages, and Productivity: A Study of Japanese Regions (2001)
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