Regional Variations in Productivity Premium of Exporters: Evidence from plant-level data

Author Name OKUBO Toshihiro (Keio University) / TOMIURA Eiichi (Faculty Fellow, RIETI)
Creation Date/NO. January 2013 13-E-005
Research Project Study of the Creation of the Japanese Economy and Trade and Direct Investment
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Exporters are more productive than non-exporters. Although this is a stylized fact, little is known on regional variations within a country. Based on plant-level longitudinal data covering all manufacturing industries in all regions of Japan, this paper finds that the productivity premium of exporters tends to be significantly smaller in regions proximate to the core and in regions with higher market potential. We have also confirmed that our principal findings are consistent with plant-level entry/exit dynamics. The export decision is not completely determined by the firm's own productivity; it is also affected by local market size and export costs.

Published: Okubo, Toshihiro, and Eiichi Tomiura, 2019. "Regional variations in exporters' productivity premium: Theory and evidence," Review of International Economics, Vol. 27(3), pp. 803-821