Regional variations in exporters’ productivity premium: Theory and evidence

Toshihiro Okubo, Eiichi Tomiura

Research output: Contribution to journalArticle

Abstract

The international trade literature confirms that the average productivity of exporters is higher than that of nonexporters, while economic geography studies establish that urban firms tend to be more productive than rural ones. By introducing region-specific transportation costs in a Melitz-type heterogeneous-firm trade model, the theory predicts that the minimum threshold productivity level for export is higher but that for survival by serving the local market is lower in the periphery region than in the core. Using Japanese plant-level panel data, we find evidence supporting the theoretical prediction that exporters in the peripheral regions, especially those distant from the core, have large productivity premiums.

Original languageEnglish
JournalReview of International Economics
DOIs
Publication statusPublished - 2019 Jan 1

Fingerprint

regional difference
premium
productivity
firm
evidence
peripheral region
economic geography
panel data
international trade
world trade
market
costs
prediction
cost

ASJC Scopus subject areas

  • Geography, Planning and Development
  • Development

Cite this

Regional variations in exporters’ productivity premium : Theory and evidence. / Okubo, Toshihiro; Tomiura, Eiichi.

In: Review of International Economics, 01.01.2019.

Research output: Contribution to journalArticle

@article{dd45b99e7eb44c828ccc9ea041275be5,
title = "Regional variations in exporters’ productivity premium: Theory and evidence",
abstract = "The international trade literature confirms that the average productivity of exporters is higher than that of nonexporters, while economic geography studies establish that urban firms tend to be more productive than rural ones. By introducing region-specific transportation costs in a Melitz-type heterogeneous-firm trade model, the theory predicts that the minimum threshold productivity level for export is higher but that for survival by serving the local market is lower in the periphery region than in the core. Using Japanese plant-level panel data, we find evidence supporting the theoretical prediction that exporters in the peripheral regions, especially those distant from the core, have large productivity premiums.",
author = "Toshihiro Okubo and Eiichi Tomiura",
year = "2019",
month = "1",
day = "1",
doi = "10.1111/roie.12398",
language = "English",
journal = "Review of International Economics",
issn = "0965-7576",
publisher = "Wiley-Blackwell",

}

TY - JOUR

T1 - Regional variations in exporters’ productivity premium

T2 - Theory and evidence

AU - Okubo, Toshihiro

AU - Tomiura, Eiichi

PY - 2019/1/1

Y1 - 2019/1/1

N2 - The international trade literature confirms that the average productivity of exporters is higher than that of nonexporters, while economic geography studies establish that urban firms tend to be more productive than rural ones. By introducing region-specific transportation costs in a Melitz-type heterogeneous-firm trade model, the theory predicts that the minimum threshold productivity level for export is higher but that for survival by serving the local market is lower in the periphery region than in the core. Using Japanese plant-level panel data, we find evidence supporting the theoretical prediction that exporters in the peripheral regions, especially those distant from the core, have large productivity premiums.

AB - The international trade literature confirms that the average productivity of exporters is higher than that of nonexporters, while economic geography studies establish that urban firms tend to be more productive than rural ones. By introducing region-specific transportation costs in a Melitz-type heterogeneous-firm trade model, the theory predicts that the minimum threshold productivity level for export is higher but that for survival by serving the local market is lower in the periphery region than in the core. Using Japanese plant-level panel data, we find evidence supporting the theoretical prediction that exporters in the peripheral regions, especially those distant from the core, have large productivity premiums.

UR - http://www.scopus.com/inward/record.url?scp=85062770493&partnerID=8YFLogxK

UR - http://www.scopus.com/inward/citedby.url?scp=85062770493&partnerID=8YFLogxK

U2 - 10.1111/roie.12398

DO - 10.1111/roie.12398

M3 - Article

AN - SCOPUS:85062770493

JO - Review of International Economics

JF - Review of International Economics

SN - 0965-7576

ER -