Multiregional Firms And Region Switching In The Us Manufacturing Sector
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Multiregional Firms and Region Switching in the US Manufacturing Sector
Author | : Antoine Gervais |
Publisher | : |
Total Pages | : 61 |
Release | : 2017 |
Genre | : |
ISBN | : |
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This paper uses data on U.S. manufacturing establishments to study the spatial real- location of resources that takes place within surviving firms as they open and close establishments in different regions. To motivate the empirical analysis, I extend existing models of industry dynamics to include production-location decisions within firms. The empirical results provide support for the mechanisms emphasized by the theoretical model. In the data, only about 3 percent of firms make the same product in more than one region, but these multiregional firms are more productive on average compared to single-region firms and account for a disproportionate share of output. The empirical results also show that “region switching” is pervasive among multiregional firms and is correlated with changes in firm and firm-region characteristics.
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