Trade Liberalisation and Plant Exit in New Zealand Manufacturing
AbstractData on New Zealand manufacturing plants are used to examine the impact of trade liberalization on plant exit. Recent theories suggest that the prospect of a declining market might cause firms to adopt stategic behaviour that causes low cost plants to exit first. This hypothesis is generally unsupported. Surviving plants were larger,lower cost,and were owned by specialised firms with few plants. Plant costs were more important than firm size for explaining the plant-closing behaviour of single-plant firms. Diversified,multiplant firms were more likely to close plants and were influenced by plant size but not plant cost.
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Bibliographic InfoPaper provided by Portsmouth University - Department of Economics in its series Papers with number 66.
Length: 21 pages
Date of creation: 1996
Date of revision:
Contact details of provider:
Postal: U.K.; University of Portsmouth; Department of Economics, Locksway Road, Milton, Southsea Hants PO4 8JF, UK
Phone: 44 (0)1705 844082
Fax: +44 (0)1705 844037
Web page: http://www.pbs.port.ac.uk/econ/index.html
More information through EDIRC
TRADE LIBERALIZATION; INDUSTRIAL PLANTS;
Other versions of this item:
- Gibson, John K & Harris, Richard I D, 1996. "Trade Liberalisation and Plant Exit in New Zealand Manufacturing," The Review of Economics and Statistics, MIT Press, vol. 78(3), pages 521-29, August.
- F10 - International Economics - - Trade - - - General
- F19 - International Economics - - Trade - - - Other
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