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Plant Closures by Multi-locational Firms: A Comparative Perspective

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  • H. D. Watts
  • J. D. Kirkham

Abstract

WATTS H. D. and KIRKHAM J. D. (1999) Plant closures by multi-locational firms: a comparative perspective, Reg. Studies 33, 413-424. Multi-locational firms often close a plant undertaking a particular activity and retain one or more plants undertaking that activity elsewhere within the corporate system. By comparing the closed plant with a plant that was retained it is possible to identify the distinctive characteristics of plants selected for closure by multi-locational firms. Matched pairs analysis of a sample of closures implemented by large UK multi-locational firms demonstrates a highly significant association between closure and small size and between closure and a remote location within a firm's corporate geography. These results, when compared with an earlier study using the matched pairs design, confirm the role of size but suggest some associations identified previously may reflect the specific characteristics of the cities in which the earlier studies were undertaken. WATTS H. D. et KIRKHAM J. D. (1999) La fermeture d'usine par les entreprises a emplacements multiples: une perspective comparative, Reg. Studies 33, 413-424. Souvent les entreprises a emplacements multiples ferment une usine dans un secteur d'activite particulier tout en conservant une ou plusieurs usines du meme secteur d'activite au sein du systeme d'entreprise. Une comparaison entre une usine fermee et une usine qui tourne toujours permet l'identification des traits distictifs des usines qui doivent etre fermees par les entreprises a emplacements multiples. Une analyse par paires correspondantes d'un echantillon des fermetures executees par les grandes entreprises a emplacements multiples au Royaume-Uni laisse voir que la fermeture d'usine est en correlation etroite avec la petite taille de l'usine, et avec l'isolement de l'usine quant a la geographie de l'entreprise. Lors d'une comparaison de ces resultats avec ceux d'une etude anterieure qui s'appuie sur une analyse par paires correspondantes, le role de la taille de l'usine se confirme, mais il se peut aussi que certaines correlations identifiees auparavant puissent refleter les traits particuliers des grandes villes ou les etudes anterieures ont ete faites. WATTS H. D. und KIRKHAM J. D. (1999) Betriebsschliessungen Standort ubergreifender Firmen: eine vergleichende Perspektive, Reg. Studies 33, 413-424. Standort ubergreifende Firmen schliessen oft einen Betrieb, der bestimmte Tatigkeiten ubernimmt, und behalten eine oder mehrere im Besitz, die diese Tatigkeit anderswo im korporativen System weiter ausfuhren. Ein Vergleich des geschlossenen Betriebs mit einem anderen, der beibehalten wurde, gestattet, typische Zuge der fur Schliessung vorgesehenen Betriebe Standort ubergreifender Firmen zu identifizieren. Eine Analyse aufeinander abgestimmter Paare aus einer Stichprobe von Schliessungen, die von grossen, Standort ubergreifenden Firmen durchgefuhrt worden war, wies eine hochsignifikante Verbindung zwischen Schliessung und geringer Betriebsgrosse, sowie Schliessung und weitentferntem Standort innerhalb der korporativen Geografie einer Firma auf. Im Vergleich mit einer fruheren Studie, die sich der Konstruktion aufeinander abgestimmter Paare bedient hatte, bestatigen diese Ergebnisse die Rolle, welche die Betriebsgosse spielt, legt aber zugleich nahe, dass zuvor identifizierte Verbindungen die besonderen Charakterzuge von Stadten widerspiegeln, in denen die fruheren Untersuchungen durchgefuhrt worden waren.

Suggested Citation

  • H. D. Watts & J. D. Kirkham, 1999. "Plant Closures by Multi-locational Firms: A Comparative Perspective," Regional Studies, Taylor & Francis Journals, vol. 33(5), pages 413-424.
  • Handle: RePEc:taf:regstd:v:33:y:1999:i:5:p:413-424
    DOI: 10.1080/00343409950081266
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    References listed on IDEAS

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    1. George A. Erickcek & Hannah McKinney, 2004. "Small Cities Blues: Looking for Growth Factors in Small and Medium-Sized Cities," Upjohn Working Papers 04-100, W.E. Upjohn Institute for Employment Research.
    2. Roger Hayter & Klaus Edenhoffer, 2016. "Evolutionary Geography of a Mature Resource Sector: Shakeouts and Shakeins in British Columbia's Forest Industries 1980 to 2008," Growth and Change, Wiley Blackwell, vol. 47(4), pages 497-519, December.
    3. Engel, Dirk & Procher, Vivien & Schmidt, Christoph M., 2010. "The Asymmetries of a Small World: Entry Into and Withdrawal From International Markets by French Firms," Ruhr Economic Papers 192, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.
    4. Kräkel, Matthias, 2010. "Shutdown Contests in Multi-Plant Firms and Governmental Intervention," IZA Discussion Papers 4852, Institute of Labor Economics (IZA).
    5. Jones, Jonathan & Wren, Colin, 2008. "Re-investment and the survival of foreign-owned plants," LSE Research Online Documents on Economics 33138, London School of Economics and Political Science, LSE Library.
    6. Jonathan Jones & Colin Wren, 2008. "Re-Investment and the Survival of Foreign-Owned Plants," SERC Discussion Papers 0003, Centre for Economic Performance, LSE.
    7. Engel, Dirk & Procher, Vivien & Schmidt, Christoph M., 2013. "Does firm heterogeneity affect foreign market entry and exit symmetrically? Empirical evidence for French firms," Journal of Economic Behavior & Organization, Elsevier, vol. 85(C), pages 35-47.
    8. Wren, Colin & Jones, Jonathan, 2009. "Re-investment and the survival of foreign-owned plants," Regional Science and Urban Economics, Elsevier, vol. 39(2), pages 214-223, March.
    9. Colin Wren & Jonathan Jones, 2003. "Re-investment, Survival and the Embeddedness of Foreign-Owned Plants," ERSA conference papers ersa03p19, European Regional Science Association.
    10. George A. Erickcek & Hannah McKinney, 2006. "“Small Cities Blues:†Looking for Growth Factors in Small and Medium-Sized Cities," Economic Development Quarterly, , vol. 20(3), pages 232-258, August.
    11. Dirk Engel & Christoph M. Schmidt & Vivien Procher, 2010. "The Asymmetries of a Small World: Entry Into and Withdrawal From International Markets by French Firms," Ruhr Economic Papers 0192, Rheinisch-Westfälisches Institut für Wirtschaftsforschung, Ruhr-Universität Bochum, Universität Dortmund, Universität Duisburg-Essen.
    12. Jesús F. Lampón & Pablo Cabanelas-Lorenzo & Santiago Lago-Peñas, 2013. "Why firms relocate their production overseas? The answer lies inside: corporate, logistic and technological determinants," Working Papers 2013/3, Institut d'Economia de Barcelona (IEB).
    13. Jesús F. Lampón & Pablo Cabanelas-Lorenzo & Santiago Lago-Peñas, 2013. "Why firms relocate their production overseas? The answer lies inside: corporate, logistic and technological determinants," Working Papers 2013/3, Institut d'Economia de Barcelona (IEB).
    14. repec:zbw:rwirep:0192 is not listed on IDEAS

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