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Government Technical Assistance Programs* And Plant Survival: The Role Of Plant Ownership Type

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  • Ron Jarmin

Abstract

This paper compares the survival rates of plants participating in manufacturing extension programs to nonparticipating plants. Participating plants receive technical and business assistance from one of a nationwide network of extension centers intended to assist smaller manufacturers. Results suggest that plant survival is related to plant size, age, productivity, capital intensity and ownership type. Importantly, the impact of extension services differs across ownership types. Participating in extension increases the probability of survival for single unit plants, but not for multi units. This result is consistent with the notion that single unit plants have less access to information on new technologies and would, therefore, benefit more from technical assistance programs such as manufacturing extension.

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File URL: ftp://ftp2.census.gov/ces/wp/1999/CES-WP-99-02.pdf
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Bibliographic Info

Paper provided by Center for Economic Studies, U.S. Census Bureau in its series Working Papers with number 99-2.

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Date of creation: Feb 1999
Date of revision:
Handle: RePEc:cen:wpaper:99-2

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Keywords: CES; economic; research; micro; data; microdata; chief; economist;

References

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  1. Steven J. Davis & John C. Haltiwanger & Scott Schuh, 1998. "Job Creation and Destruction," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262540932, December.
  2. Ronald S. Jarmin, 1999. "Evaluating the impact of manufacturing extension on productivity growth," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 18(1), pages 99-119.
  3. Ron Jarmin, 1998. "Manufacturing Extension And Productivity Dynamics," Working Papers 98-8, Center for Economic Studies, U.S. Census Bureau.
  4. William J. Carrington, 1993. "Wage Losses for Displaced Workers: Is It Really the Firm That Matters?," Journal of Human Resources, University of Wisconsin Press, vol. 28(3), pages 435-462.
  5. Jovanovic, Boyan, 1982. "Selection and the Evolution of Industry," Econometrica, Econometric Society, vol. 50(3), pages 649-70, May.
  6. C J Krizan, 1998. "Localized Effects Of CaliforniaS Military Base Realignments: Evidence From Multi-Sector Longitudinal Microdata," Working Papers 98-19, Center for Economic Studies, U.S. Census Bureau.
  7. Lucia Foster & John Haltiwanger & C.J. Krizan, 1998. "Aggregate Productivity Growth: Lessons from Microeconomic Evidence," NBER Working Papers 6803, National Bureau of Economic Research, Inc.
  8. repec:fth:stanho:e-90-20 is not listed on IDEAS
  9. George S Olley & Ariel Pakes, 1992. "The Dynamics Of Productivity In The Telecommunications Equipment Industry," Working Papers 92-2, Center for Economic Studies, U.S. Census Bureau.
  10. Timothy Dunne, 1994. "Plant Age and Technology Use in US. Manufacturing Industries," RAND Journal of Economics, The RAND Corporation, vol. 25(3), pages 488-499, Autumn.
  11. Mary E. Deily, 1991. "Exit Strategies and Plant-Closing Decisions: The Case of Steel," RAND Journal of Economics, The RAND Corporation, vol. 22(2), pages 250-263, Summer.
  12. Doms, Mark & Dunne, Timothy & Roberts, Mark J., 1995. "The role of technology use in the survival and growth of manufacturing plants," International Journal of Industrial Organization, Elsevier, vol. 13(4), pages 523-542, December.
  13. Dunne, T. & Roberts, M.J., 1990. "Wages And The Risk Of Plant Closing," Papers 6-90-2, Pennsylvania State - Department of Economics.
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Citations

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Cited by:
  1. Richard Harris & John Moffat, 2011. "Plant-level determinants of total factor productivity in Great Britain, 1997-2006," LSE Research Online Documents on Economics 33561, London School of Economics and Political Science, LSE Library.
  2. Eric Strobl & Sourafel Girma & Holger Gorg, 2004. "Government Grants, Plant Survival And Employment Growth: A Micro-Econometric Analysis," Royal Economic Society Annual Conference 2004 99, Royal Economic Society.
  3. Bernd Ebersberger, 2011. "Public funding for innovation and the exit of firms," Journal of Evolutionary Economics, Springer, vol. 21(3), pages 519-543, August.
  4. Mark Cassidy & Eric Strobl, 2004. "Subsidizing Industry: An Empirical Analysis of Irish Manufacturing," Journal of Industry, Competition and Trade, Springer, vol. 4(2), pages 95-107, 06.
  5. Girma, Sourafel & Gorg, Holger & Strobl, Eric, 2007. "The effects of government grants on plant survival: A micro-econometric analysis," International Journal of Industrial Organization, Elsevier, vol. 25(4), pages 701-720, August.
  6. Meuleman, Miguel & De Maeseneire, Wouter, 2012. "Do R&D subsidies affect SMEs’ access to external financing?," Research Policy, Elsevier, vol. 41(3), pages 580-591.

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