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Size Matters: Multi-plant operation and the separation of corporate headquarters


  • OKUBO Toshihiro
  • TOMIURA Eiichi


This paper addresses two questions: i) under what circumstances corporate headquarters are separated from production plants, and ii) what types of plants are operated by multi-plant firms. We examine these issues using plant-level manufacturing census data. This paper has two main findings. Firstly, when a plant is large, productive, or intensive in labor or material use, then the plant tends to be managed by a corporate headquarters that is geographically separated from the plant, and the plant is also more likely to be a part of multi-plant operation. Secondly, there is a substantially greater marginal effect from a change in plant size on the probability of multi-plant operation when plants have around two hundred workers than at the mean.

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  • OKUBO Toshihiro & TOMIURA Eiichi, 2011. "Size Matters: Multi-plant operation and the separation of corporate headquarters," Discussion papers 11049, Research Institute of Economy, Trade and Industry (RIETI).
  • Handle: RePEc:eti:dpaper:11049

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    References listed on IDEAS

    1. Amartya Lahiri & Carlos A. Vegh, 2003. "Delaying the Inevitable: Interest Rate Defense and Balance of Payments Crises," Journal of Political Economy, University of Chicago Press, vol. 111(2), pages 404-424, April.
    2. Van Rijckeghem, Caroline & Weder, Beatrice, 2001. "Sources of contagion: is it finance or trade?," Journal of International Economics, Elsevier, vol. 54(2), pages 293-308, August.
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    Cited by:

    1. Toshihiro Okubo & Eiichi Tomiura, 2016. "Multi-plant operation and corporate headquarters separation: Evidence from Japanese plant-level," Keio-IES Discussion Paper Series 2016-016, Institute for Economics Studies, Keio University.
    2. OKUBO Toshihiro & TOMIURA Eiichi, 2016. "Multi-plant Operation and Corporate Headquarters Separation: Evidence from Japanese plant-level panel data," Discussion papers 16002, Research Institute of Economy, Trade and Industry (RIETI).
    3. Okubo, Toshihiro & Tomiura, Eiichi, 2016. "Multi-plant operation and headquarters separation: Evidence from Japanese plant-level panel data," Japan and the World Economy, Elsevier, vol. 39(C), pages 12-22.

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