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Multiple Facilities, Strategic Splitting And Vertical Structures: Stability, Growth And Distribution Reconsidered

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Author Info
DAN COFFEY
PHILIP R. TOMLINSON

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Abstract

This paper explores comparative cost structures when large firms split operations between separate production facilities in a way that puts pressure on wage rates and worker effort levels: one example of a 'divide and rule' strategy. It differentiates horizontal structures of this kind based on requirements for stability in a context of growing aggregate production vis-à-vis wages and effort. The analysis is formulated within a more general perspective that also considers vertical structures. It considers the implications for contemporary policy debates on desirable industrial forms, and concludes with a discussion of factors that might limit the scope for policies intended to promote industrial stability and redistribution via existing production networks. Copyright © 2006 The Authors; Journal compilation © 2006 Blackwell Publishing Ltd and The University of Manchester.

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File URL: http://www.blackwell-synergy.com/doi/abs/10.1111/j.1467-9957.2006.00509.x
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Publisher Info
Article provided by University of Manchester in its journal Manchester School.

Volume (Year): 74 (2006)
Issue (Month): 5 (09)
Pages: 558-576
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Handle: RePEc:bla:manchs:v:74:y:2006:i:5:p:558-576

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Web page: http://www.blackwellpublishing.com/journal.asp?ref=1463-6786

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This page was last updated on 2009-11-22.

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