search query: @indexterm Foreign investment / total: 1949
reference: 262 / 1949
| Author: | Blonigen, B. A. Tomlin, K. |
| Title: | Size and growth of Japanese plants in the United States |
| Journal: | International Journal of Industrial Organization
2001 : MAY, VOL. 19:6, p. 931-952 |
| Index terms: | FOREIGN INVESTMENT INVESTMENT INDUSTRIAL PLANT GROWTH |
| Language: | eng |
| Abstract: | Using a unique database on Japanese manufacturing plants in the United States, the authors 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, the authors' estimates strongly reject Gibrat's Law for these plants and suggest smaller plants grow faster. The authors 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. |
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