Arimoto, Yutaka; Nakajima, Kentaro; Okazaki, Tetsuji - In: Regional Science and Urban Economics 46 (2014) C, pp. 27-41
We examine two sources of productivity improvements in localized industrial clusters of the silk-reeling industry in prewar Japan. Agglomeration improves the productivity of each plant through positive externalities which shift plant-level productivity distribution to the right. Selection expels...