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Firm Structure, Multinationals, and Manufacturing Plant Deaths

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  • Andrew B. Bernard

    ()
    (Dartmouth College)

  • J. Bradford Jensen

    ()
    (Institute for International Economics)

Abstract

Plant shutdowns shape industry productivity, the dynamics of employment, and industrial restructuring. Plant closures account for more than half of gross job destruction in US manufacturing. This paper examines the effects of firm structure on US manufacturing plant closures. Plants belonging to multi-plant firms and those owned by US multinationals are less likely to exit. However, the superior survival chances are due to the characteristics of the plants rather than the nature of the firms. Controlling for plant and industry attributes, we find that plants owned by multi-unit firms and US multinationals are much more likely to close.

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Bibliographic Info

Paper provided by Peterson Institute for International Economics in its series Working Paper Series with number WP06-7.

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Date of creation: Sep 2006
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Handle: RePEc:iie:wpaper:wp06-7

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Keywords: Exit; shutdown; closure; multi-plant firms; multinational firms; takeovers; entry costs; agglomeration; specialization;

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