“Regional Variations in Productivity Premium of Exporters” by Professor Eiichi Tomiura
STRATEGY AND IB
Professor Eiichi Tomiura
Previous literature has confirmed that the productivity tends to be higher for exporters relative to non-exporters and for urban firms relative to rural firms. By introducing Ricardian comparative advantage into Melitz-type heterogeneous firm trade model, the theory predicts that the minimum threshold productivity level for exporting is higher but that for survival by serving the local market is lower in periphery compared with core. From Japanese plant-level data analyses such as aggregated prefecture-level comparisons, plant-level regressions, and distributional comparisons of plant productivities, we find a support for the theoretical prediction: large productivity premium of exporters especially in peripheral regions.