The Extent and Nature of Establishment Level Diversification in Sixteen U.S. Manufacturing Industries
This paper examines the heterogeneity of establishments in sixteen manufacturing industries. Basic statistical measures are used to decompose product diversification at the establishment level into industry, firm, and establishment effects. The industry effect is the weakest; nearly all the observed heterogeneity is establishment specific. Product diversification at the establishment level is idiosyncratic to the firm. Establishments within a firm exhibit a significant degree of homogeneity, although the grouping of products differ across firms. With few exceptions, economies of scope and scale in production appear to play a minor role in the establishment's mix of outputs.
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- Goto, Akira, 1981. "Statistical Evidence on the Diversification of Japanese Large Firms," Journal of Industrial Economics, Wiley Blackwell, vol. 29(3), pages 271-78, March.
- Charles H. Berry, 1974. "Corporate Diversification and Market Structure," Bell Journal of Economics, The RAND Corporation, vol. 5(1), pages 196-204, Spring.
- Gorecki, Paul K, 1974. "The Measurement of Enterprise Diversification," The Review of Economics and Statistics, MIT Press, vol. 56(3), pages 399-401, August.
- Robert H Mcguckin & George A Pascoe, 1988. "The Longitudinal Research Database (LRD): Status And Research Possibilities," Working Papers 88-2, Center for Economic Studies, U.S. Census Bureau.
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