Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/52842
Authors: 
Davis, Donald R.
Weinstein, David E.
Year of Publication: 
2003
Series/Report no.: 
WIDER Discussion Papers // World Institute for Development Economics (UNU-WIDER) 2003/53
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. A simple counterfactual shows that if economic activity were spread evenly over the 40 regions of Japan, aggregate output would fall by 5 percent. – markets ; regions ; productivity
JEL: 
D2
R0
R3
Document Type: 
Working Paper

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