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Firm Structure, Multinationals, and Manufacturing Plant Deaths

Author

Listed:
  • Andrew B. Bernard

    (Dartmouth College)

  • J. Bradford Jensen

    (Peterson 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.

Suggested Citation

  • Andrew B. Bernard & J. Bradford Jensen, 2006. "Firm Structure, Multinationals, and Manufacturing Plant Deaths," Working Paper Series WP06-7, Peterson Institute for International Economics.
  • Handle: RePEc:iie:wpaper:wp06-7
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    Exit; shutdown; closure; multi-plant firms; multinational firms; takeovers; entry costs; agglomeration; specialization;
    All these keywords.

    JEL classification:

    • D21 - Microeconomics - - Production and Organizations - - - Firm Behavior: Theory
    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • L20 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - General
    • L6 - Industrial Organization - - Industry Studies: Manufacturing

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