Title
Size and growth of Japanese plants in the United States
Abbreviated Journal Title
Int. J. Ind. Organ.
Keywords
foreign direct investment; plant size and growth; FOREIGN DIRECT-INVESTMENT; FIRM GROWTH; MANUFACTURING-INDUSTRIES; EXCHANGE-RATES; PERFORMANCE; INNOVATION; SELECTION; SURVIVAL; ENTRY; Economics
Abstract
Using a unique database on Japanese manufacturing plants in the United States, we examine for the first time the relationship between plant size and growth for foreign-owned affiliate plants. Japanese manufacturing affiliates are three times larger on average than comparable US plants and experienced 30% growth from 1987 through 1990. Despite this, our estimates strongly reject Gibrat's Law for these plants and suggest smaller plants grow faster. We also find younger plants grow quicker and previous investments by the parent firm mean slower growth, particularly for automobile-related plants, Both are consistent with inexperienced firms growing faster as they learn. (C) 2001 Elsevier Science B.V. All rights reserved.
Journal Title
International Journal of Industrial Organization
Volume
19
Issue/Number
6
Publication Date
1-1-2001
Document Type
Article
Language
English
First Page
931
Last Page
952
WOS Identifier
ISSN
0167-7187
Recommended Citation
"Size and growth of Japanese plants in the United States" (2001). Faculty Bibliography 2000s. 2935.
https://stars.library.ucf.edu/facultybib2000/2935