We examine two sources of productivity improvement in the specialized industrial clusters. Agglomeration improves the roductivity of each plant through positive externalities, shifting plant-level productivity distribution to the right. Selection expels less productive plants through...

We examine two sources of productivity improvement in the specialized industrial clusters. Agglomeration improves the productivity of each plant through positive externalities, shifting plant-level productivity distribution to the right. Selection expels less productive plants through...

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...