[{"data":1,"prerenderedAt":-1},["ShallowReactive",2],{"detail-sidebar-cat-0-en-105":3,"doc-seo-321062-105":59,"doc-detail-321062-en":131},{"code":4,"msg":5,"data":6},0,"success",[7,13,18,23,28,33,38,43,48,51,55],{"id":8,"doc_module":4,"doc_module_name":9,"category_name":10,"show_sort_weight":11,"slug":12},1,"Document","Story & Novel",90,"story-novel",{"id":14,"doc_module":4,"doc_module_name":9,"category_name":15,"show_sort_weight":16,"slug":17},2,"Literature",80,"literature",{"id":19,"doc_module":4,"doc_module_name":9,"category_name":20,"show_sort_weight":21,"slug":22},4,"Exam",70,"exam",{"id":24,"doc_module":4,"doc_module_name":9,"category_name":25,"show_sort_weight":26,"slug":27},5,"Comic",60,"comic",{"id":29,"doc_module":4,"doc_module_name":9,"category_name":30,"show_sort_weight":31,"slug":32},6,"Technology",50,"technology",{"id":34,"doc_module":4,"doc_module_name":9,"category_name":35,"show_sort_weight":36,"slug":37},7,"Healthcare",40,"healthcare",{"id":39,"doc_module":4,"doc_module_name":9,"category_name":40,"show_sort_weight":41,"slug":42},8,"Research & Report",30,"research-report",{"id":44,"doc_module":4,"doc_module_name":9,"category_name":45,"show_sort_weight":46,"slug":47},9,"Religion & Spirituality",20,"religion-spirituality",{"id":46,"doc_module":4,"doc_module_name":9,"category_name":49,"show_sort_weight":46,"slug":50},"World Cup","world-cup",{"id":52,"doc_module":4,"doc_module_name":9,"category_name":53,"show_sort_weight":52,"slug":54},10,"Lifestyle","lifestyle",{"id":56,"doc_module":4,"doc_module_name":9,"category_name":57,"show_sort_weight":24,"slug":58},19,"General","general",{"code":4,"msg":60,"data":61},"ok",{"site_id":62,"language":63,"slug":64,"title":65,"keywords":66,"description":67,"schema_data":68,"social_meta":124,"head_meta":126,"extra_data":128,"updated_unix":130},105,"en","regional-productivity-growth-and-plant-level-dynamics-economic-commentary-exam","Regional Productivity Growth and Plant-Level Dynamics - Economic Commentary Exam","","Explains why regional differences in labor productivity growth matter to economists and policymakers, linking them to long-term wage and living-standard gains, competitive position over time, and per-capita income dynamics. Describes how manufacturing plants drive productivity through worker training, new machinery, and technology adoption, while arguing that aggregate outcomes depend heavily on reallocation. Quantifies the roles of entries, expansions, and exits using U.S. Census microdata and microeconomic mechanisms.",{"@graph":69,"@context":123},[70,84,106],{"@type":71,"itemListElement":72},"BreadcrumbList",[73,77,79,82],{"item":74,"name":75,"@type":76,"position":8},"https://docshare.wps.com","Home","ListItem",{"item":78,"name":9,"@type":76,"position":14},"https://docshare.wps.com/document/",{"item":80,"name":40,"@type":76,"position":81},"https://docshare.wps.com/document/research-report/",3,{"item":83,"name":65,"@type":76,"position":19},"https://docshare.wps.com/document/regional-productivity-growth-and-plant-level-dynamics-economic-commentary-exam/321062/",{"url":83,"name":65,"@type":85,"image":86,"author":91,"headline":65,"publisher":94,"fileFormat":97,"inLanguage":63,"description":67,"dateModified":98,"datePublished":99,"encodingFormat":97,"isAccessibleForFree":100,"interactionStatistic":101},"DigitalDocument",{"url":87,"@type":88,"width":89,"height":90},"https://docshare.wps.com/thumbnails/regional-productivity-growth-and-plant-level-dynamics-economic-commentary-exam/321062.png","ImageObject",300,407,{"name":92,"@type":93},"Logic","Person",{"url":74,"name":95,"@type":96},"DocShare","Organization","application/pdf","2026-11-04","2026-09-21",true,{"@type":102,"interactionType":103,"userInteractionCount":105},"InteractionCounter",{"@type":104},"ViewAction",14,{"@type":107,"mainEntity":108},"FAQPage",[109,115,119],{"name":110,"@type":111,"acceptedAnswer":112},"Why is regional productivity growth an important goal for economists and policymakers?","Question",{"text":113,"@type":114},"Because labor productivity growth is closely tied to long-term wage and living-standard gains, it reflects a region’s competitive position over time, and it helps per-capita personal income grow faster when productivity rises.","Answer",{"name":116,"@type":111,"acceptedAnswer":117},"How do individual manufacturing plants contribute to productivity growth?",{"text":118,"@type":114},"Plants can raise output per hour by training workers, adopting new machines to perform routine tasks more efficiently, and incorporating new technologies that increase productivity.",{"name":120,"@type":111,"acceptedAnswer":121},"What explains most differences in aggregate manufacturing productivity growth across regions?",{"text":122,"@type":114},"Changing the mix of plants in operation—more-productive plants opening or expanding while less-productive ones close or contract—so that resources are reallocated efficiently across plants.","https://schema.org",{"og:url":83,"og:type":125,"og:title":65,"og:site_name":95,"og:description":67},"article",{"robots":127,"canonical":83},"index,follow",{"doc_id":129,"site_id":62},321062,1790459787,{"code":4,"msg":5,"data":132},{"doc_id":129,"user_id":133,"nickname":92,"user_avatar":134,"doc_module":4,"category_id":39,"category_name":40,"doc_title":65,"doc_description":67,"doc_content":135,"file_id":136,"file_url":137,"file_type":138,"file_size":139,"view_count":105,"is_deleted":4,"is_public":8,"is_downloadable":8,"audit_status":8,"page_count":34,"language":140,"language_code":63,"site_id":62,"html_lang":63,"table_of_contents":141,"faqs":142,"seo_title":143,"seo_description":67,"update_tm":144,"read_time":145,"preview_page_count":4},1099513958762,"https://ap-avatar.wpscdn.com/avatar/1000023916a998db790?x-image-process=image/resize,m_fixed,w_180,h_180&k=1784791008015729253","by YoonsooLee  \nExplaining variations in productivitygrowth across regions has become animportant goal for economists and pol-icymakers for several reasons:Laborproductivity growth is closely tied tolong-tenn gains in wages and livingstandards.At the regional level,it alsogauges a region's competitive positionover time.Moreover.per capita per-sonal income,a comnon indicator ofthe standard of living.can grow fasterif labor productivity grows faster.  \nOne way productivity growth occurs iswhen individual manufacturing plantsor places of business increase theirworkers'output per hour(that is to say,their productivity,and in what follows,\"productivity“always tmeans \"laborproductivity.\")They could help theirworkers acquire new skills througheducation or training.They could alsobuy new machines to perforn routinetasks,freeing workers for tasks thatadd greater value.  \nWhile most people think productivitygrowth at individual plants and placesof business is a major source of aggre-gate growth,it is only part of the story.For example,during the 1987-97period,productivity changes for indi-vidual manufacturing plants explainabout 40 percent of total changes inU.S.manufacturing productivity.Whatexplains the other 60 percent?  \nThe bulk of this 60 percent isexplained by the changing mix ofplants in operation—that iswhenmore-productive plants open orexpand while less-productive onesclose or contract,it affects aggregateproductivity.  \n# Regional Productivity Growth andPlant-Level Dynamics\n\nThis Economic Commentary exam-ines how the process of manufac-turing plants'entry,expansion,andexit affects the productivity growthof an economy.Using microdata onU.S.manufacturing from the Cen-sus Bureau,we quantify the role ofreallocations.entries,and exits in orderto explain differences in manufacturingproductivity growth across regions.Wefind that what matters more than indi-vidual plants'productivity growth inexplaining regional productivity differ-ences is how efficiently resources arereallocated across plants.  \n## ■ Sources of ProductivityGrowth\n\nSome economic growth modelsexplain the link between plant-leveldynamics and aggregate productivitygrowth with an emphasis on the roleof creative destruction.They maintainthat as a new plant enters the marketwith new technology it competes withexisting plants that are using conven-tional technology.As new innovationsbecome successful,aggregate produc-tivity evolves.Newer,more-prodluctiveplants drive out less-productive ones.and resources are reallocated from theincumbents to the new entrants.As aconsequence.the economy's overallefficiency level rises.Economists callthe combined results of entries andexits on productivity growth net-entryeffects.  \nNet-entry effects would be the mostimportant source ofproductiv-ity growth if new technologies wereadopted mainly by new plants.How-ever,some incumbents actively retooltheir production facilities to incorpo-rate new technology.In fact.young  \nThe mix of companies in theeconomy is always changing.Themore-productive ones expand,and the less-productive ones aredriven out of the market,freeingresources such as labor and capi-tal for new ventures.This reallo-cation contributes more to aggre-gate productivity growth thanthe productivity gains achievedby individual businesses.Theefficiency with which the processtakes place is a key factor affect-ing rates of productivity growthin different regions and explain-ing why they differ.  \nand old plants tend to adopt new tech-nologies with about the same fre-quency.according to a 1994 study con-ducted by Tim Dunne,who exploresthis issue using microdata on manufac-turing plants.  \nThe fact that existing plants canimprove their productivity as well asnew plants means that aggregate pro-ductivity may increase through twochannels:First,aggregate produc-tivity may increase if the productiv-ity at individual plants increases.Forexample,if al plants in the economyadoptedan innovative fechnology thatincreased their productivity levels","cbCaib5WRjoffzRM","https://ap.wps.com/l/cbCaib5WRjoffzRM","pdf",1484698,"English","# Regional Productivity Growth and Plant-Level Dynamics\n## Sources of Productivity Growth\n## ■Labor Productivity Growth across Regions","[{\"question\":\"Why is regional productivity growth an important goal for economists and policymakers?\",\"answer\":\"Because labor productivity growth is closely tied to long-term wage and living-standard gains, it reflects a region’s competitive position over time, and it helps per-capita personal income grow faster when productivity rises.\"},{\"question\":\"How do individual manufacturing plants contribute to productivity growth?\",\"answer\":\"Plants can raise output per hour by training workers, adopting new machines to perform routine tasks more efficiently, and incorporating new technologies that increase productivity.\"},{\"question\":\"What explains most differences in aggregate manufacturing productivity growth across regions?\",\"answer\":\"Changing the mix of plants in operation—more-productive plants opening or expanding while less-productive ones close or contract—so that resources are reallocated efficiently across plants.\"}]","Regional Productivity Growth and Plant-Level Dynamics - Economic Commentary Exam | PDF",1789958322,18]