Size and growth of Japanese plants in the United States

    Authors

    B. A. Blonigen;K. Tomlin

    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

    WOS:000168224200004

    ISSN

    0167-7187

    Share

    COinS