{"title":"The internal geography of firms","authors":"Dominick Bartelme , Oren Ziv","doi":"10.1016/j.jinteco.2024.103889","DOIUrl":null,"url":null,"abstract":"<div><p>We document that plants belonging to small and mid-sized firms are geographically concentrated, while large firms are much more dispersed. These differences are sizable; firms with 2 plants have a dispersion that is 5 log points lower than predicted by industry location patterns, while the corresponding figure is less than 2 log points for firms with 40 plants and less than a half log point for firms with 100 or more plants. These patterns are qualitatively robust across industries, time periods, and alternative specifications. We also find that plants that are farther from the firm headquarters employ less workers than closer plants within the same firm, and that this relationship is attenuated in large firms. We interpret these findings through the lens of a model of plant location in which more productive firms endogenously choose to lower their cost of geographic expansion.</p></div>","PeriodicalId":16276,"journal":{"name":"Journal of International Economics","volume":"148 ","pages":"Article 103889"},"PeriodicalIF":3.8000,"publicationDate":"2024-01-18","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"0","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"Journal of International Economics","FirstCategoryId":"96","ListUrlMain":"https://www.sciencedirect.com/science/article/pii/S0022199624000138","RegionNum":1,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q1","JCRName":"ECONOMICS","Score":null,"Total":0}
引用次数: 0
Abstract
We document that plants belonging to small and mid-sized firms are geographically concentrated, while large firms are much more dispersed. These differences are sizable; firms with 2 plants have a dispersion that is 5 log points lower than predicted by industry location patterns, while the corresponding figure is less than 2 log points for firms with 40 plants and less than a half log point for firms with 100 or more plants. These patterns are qualitatively robust across industries, time periods, and alternative specifications. We also find that plants that are farther from the firm headquarters employ less workers than closer plants within the same firm, and that this relationship is attenuated in large firms. We interpret these findings through the lens of a model of plant location in which more productive firms endogenously choose to lower their cost of geographic expansion.
期刊介绍：
The Journal of International Economics is intended to serve as the primary outlet for theoretical and empirical research in all areas of international economics. These include, but are not limited to the following: trade patterns, commercial policy; international institutions; exchange rates; open economy macroeconomics; international finance; international factor mobility. The Journal especially encourages the submission of articles which are empirical in nature, or deal with issues of open economy macroeconomics and international finance. Theoretical work submitted to the Journal should be original in its motivation or modelling structure. Empirical analysis should be based on a theoretical framework, and should be capable of replication.
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