Vertical Industry Relations, Spillovers, and Productivity: Evidence from Chilean Plants

27 Pages Posted: 13 Oct 2009

See all articles by Ricardo A. López

Ricardo A. López

Brandeis International Business School

Jens Suedekum

Heinrich-Heine-University Duesseldorf, Duesseldorf Institute for Competition Economics (DICE); Centre for Economic Policy Research (CEPR); CESifo (Center for Economic Studies and Ifo Institute); Institute for the Study of Labor (IZA)

Date Written: 2009-06

Abstract

We use disaggregated data on Chilean plants, and the Chilean input–output table to examine the impact of agglomeration spillovers on total factor productivity (TFP). In common with previous studies, we find evidence for intraindustry spillovers, but none for general cross-industry spillovers. This picture changes when we take vertical industry relations into account. There are important productivity spillovers from plants in upstream industries. Interestingly, a similar effect cannot be found from plants in downstream industries. The number of plants in these sectors has no effect on plant-level TFP, just as the number of plants in other industries that are neither important upstream suppliers nor downstream customers also has no effect.

Suggested Citation

Lopez, Ricardo A. and Südekum, Jens, Vertical Industry Relations, Spillovers, and Productivity: Evidence from Chilean Plants (2009-06). Journal of Regional Science, Vol. 49, Issue 4, pp. 721-747, October 2009, Available at SSRN: https://ssrn.com/abstract=1487269 or http://dx.doi.org/10.1111/j.1467-9787.2009.00631.x

Ricardo A. Lopez (Contact Author)

Brandeis International Business School ( email )

Mailstop 32
Waltham, MA 02454-9110
United States

HOME PAGE: http://people.brandeis.edu/~rlopez/

Jens Südekum

Heinrich-Heine-University Duesseldorf, Duesseldorf Institute for Competition Economics (DICE) ( email )

Universitaetsstr. 1
Duesseldorf, NRW 40225
Germany

Centre for Economic Policy Research (CEPR) ( email )

London
United Kingdom

CESifo (Center for Economic Studies and Ifo Institute) ( email )

Poschinger Str. 5
Munich, DE-81679
Germany

Institute for the Study of Labor (IZA)

P.O. Box 7240
Bonn, D-53072
Germany

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