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Multi-plant operation and headquarters separation: Evidence from Japanese plant-level panel data

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  • Okubo, Toshihiro
  • Tomiura, Eiichi

Abstract

This paper shows (i) under what circumstances corporate headquarters (HQs) are separated from production plants and (ii) what type of plants are operated by multi-plant firms. By analyzing Japanese plant-level panel data from manufacturing census, we find that large-sized plants or plants intensively purchasing materials significantly tend to be separated from HQs and become a part of multi-plant operations. This pattern suggests an impact of managerial burden. We confirm the robustness of our main findings by dynamic switching patterns of plant status. Factors of economic geography, such as distance from core, also have noticeable impacts.

Suggested Citation

  • Okubo, Toshihiro & Tomiura, Eiichi, 2016. "Multi-plant operation and headquarters separation: Evidence from Japanese plant-level panel data," Japan and the World Economy, Elsevier, vol. 39(C), pages 12-22.
    • Handle: RePEc:eee:japwor:v:39:y:2016:i:c:p:12-22
    DOI: 10.1016/j.japwor.2016.06.002
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    More about this item

    Keywords

    Corporate headquarters; Multi-plant operation; Plant size; Plant-level data;
    All these keywords.

    JEL classification:

    • L22 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Organization and Market Structure
    • L23 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Organization of Production
    • R32 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Other Spatial Production and Pricing Analysis

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