In this paper, geographical spillover potential is modeled and empirically examined using factory-level data from Japans Census of Manufactures. First, the efficiency of each factory is estimated using a non-parametric data envelopment analysis (DEA) model for each industry. Second, the...

This paper investigates the effect of exogenous entry barriers on productivity growth, using an R&D-based endogenous growth model. When firms are heterogeneous in their innovation efficiency levels, we found that a reduction in entry costs lowers the relative importance of a selection mechanism...