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Corporate geography in multi-plant firms

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  • Rita Cappariello

    ()
    (Bank of Italy)

  • Stefano Federico

    ()
    (Bank of Italy)

  • Roberta Zizza

    ()
    (Bank of Italy)

Abstract

This paper focuses on how multi-plant firms allocate their workforce and investments between headquarters or plants located in or close to the headquarters area (HQ plants) and those located in the same country but farther away from the headquarters area (non-HQ plants). Using survey data on Italian industrial multi-plant firms for the last decade, we find that, for the same firm, employment and investments grow significantly less in non-HQ plants compared to HQ plants. We discuss several possible interpretations of these "corporate geography" patterns.

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File URL: http://www.bancaditalia.it/pubblicazioni/econo/temidi/td12/td865_12/en_td865/en_tema_865.pdf
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Bibliographic Info

Paper provided by Bank of Italy, Economic Research and International Relations Area in its series Temi di discussione (Economic working papers) with number 865.

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Date of creation: Apr 2012
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Handle: RePEc:bdi:wptemi:td_865_12

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Web page: http://www.bancaditalia.it
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Keywords: multi-plant firms; firm headquarters; employment; investment; Italy;

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  1. J. Bradford Jensen & Andrew Bernard, 2005. "Firm Structure, Multinationals, and Manufacturing Plant Deaths," Working Papers 05-18, Center for Economic Studies, U.S. Census Bureau.
  2. Blundell, Richard & Bond, Stephen, 1998. "Initial conditions and moment restrictions in dynamic panel data models," Journal of Econometrics, Elsevier, vol. 87(1), pages 115-143, August.
  3. J Vernon Henderson & James Davis, 2004. "The Agglomeration of Headquarters," Working Papers 04-02, Center for Economic Studies, U.S. Census Bureau.
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