Local productivity spillovers
By: Snow, N.B., Carrier, N.G. and Pavan, R
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Material type: 
BookPublisher: The American Economic Review Description: 114(4), Apr, 2024: p.1030-1069.Subject(s): Local Productivity Spillovers, Canadian Administrative Data, Revenue Spillovers, Productivity Spillovers, Fine Spatial Scales, Endogenous Sorting, Firm Revenue Elasticity, Firm Productivity Elasticity, Economic Activity Density, Productive Locations, Peer Group Quality, Aggregate Quality, Spatial Economics, Business Clustering, Economic Geography, Firm Performance, Market Dynamics, Productivity Measurement, Spatial Sorting, Industrial Organization
In:
The American Economic ReviewSummary: Using Canadian administrative data, this paper presents evidence of revenue and productivity spillovers across firms at fine spatial scales. Accounting for the endogenous sorting of firms across space, we estimate an average elasticity of firm revenue and productivity with respect to the average quality of other firms within 75 meters of 0.024. We find scant evidence that the average firm benefits from being surrounded by a greater amount of economic activity at this spatial scale. Sorting of higher-quality firms into more productive locations and higher average and aggregate quality peer groups is salient in the data.- Reproduced
https://www.aeaweb.org/articles?id=10.1257/aer.20211589
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Articles
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Indian Institute of Public Administration | 114(4), Apr, 2024: p.1030-1069 | Available | AR132080 |
Using Canadian administrative data, this paper presents evidence of revenue and productivity spillovers across firms at fine spatial scales. Accounting for the endogenous sorting of firms across space, we estimate an average elasticity of firm revenue and productivity with respect to the average quality of other firms within 75 meters of 0.024. We find scant evidence that the average firm benefits from being surrounded by a greater amount of economic activity at this spatial scale. Sorting of higher-quality firms into more productive locations and higher average and aggregate quality peer groups is salient in the data.- Reproduced
https://www.aeaweb.org/articles?id=10.1257/aer.20211589
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