The impact of firm-type dominance on regional manufacturing growth
Availability of financial capital and location decisions are variables that influence regional manufacturing output. This study maintains that a region’s manufacturing growth depends upon the region’s firm-type dominance. That is, the type of firms that dominate the region’s manufacturing output can be classified as non-local (national or foreign - NF) vs. local and large vs. small. Accordingly, for policy analysis, regions can be classified by firm-type dominance. This distinction is important since, invariably, location decision options and availability of financial capital are more favourable for the larger NF firms than for local firms. In an attempt to assess the impact of firm-type dominance, this study draws upon the dominant industry model which has established that, in any given region, there is a dominant industry (the driving force of the region) to which a region’s manufacturing growth is linked. The information on the impact of firm-type dominance on a region's manufacturing output may enable policy-makers to design workable (or revise existing) manufacturing diversification policies.
|Date of creation:||23 Aug 2007|
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- Cletus C. Coughlin, 1992. "Foreign-owned companies in the U.S.: malign or benign?," Review, Federal Reserve Bank of St. Louis, issue May, pages 17-31.
- Harry W. Richardson, 1978. "The State of Regional Economics: A Survey Article," International Regional Science Review, , vol. 3(1), pages 1-48, October.
- Ersenkal, Caryl R. & Dillman, B.L., 1984. "The Product Cycle and Shifts in the Location of Manufacturing," Journal of Regional Analysis and Policy, Mid-Continent Regional Science Association, vol. 14(1).
- Bremmer, Dale S. & Kesselring, Randall G., 1993. "The Determinants of Regional Manufacturing Investment: A Simultaneous Equations Approach," Journal of Regional Analysis and Policy, Mid-Continent Regional Science Association, vol. 23(2). Full references (including those not matched with items on IDEAS)
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