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Corporate geography in multi-plant firms

Author

Listed:
  • Rita Cappariello

    (Bank of Italy)

  • Stefano Federico

    (Bank of Italy)

  • Roberta Zizza

    (Bank of Italy)

Abstract

This paper focuses on how multi-plant firms allocate their workforce and investments between headquarters or plants located in or close to the headquarters area (HQ plants) and those located in the same country but farther away from the headquarters area (non-HQ plants). Using survey data on Italian industrial multi-plant firms for the last decade, we find that, for the same firm, employment and investments grow significantly less in non-HQ plants compared to HQ plants. We discuss several possible interpretations of these "corporate geography" patterns.

Suggested Citation

  • Rita Cappariello & Stefano Federico & Roberta Zizza, 2012. "Corporate geography in multi-plant firms," Temi di discussione (Economic working papers) 865, Bank of Italy, Economic Research and International Relations Area.
    • Handle: RePEc:bdi:wptemi:td_865_12
    as

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    File URL: http://www.bancaditalia.it/pubblicazioni/temi-discussione/2012/2012-0865/en_tema_865.pdf
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    References listed on IDEAS

    as
    1. Davis, James C. & Henderson, J. Vernon, 2008. "The agglomeration of headquarters," Regional Science and Urban Economics, Elsevier, vol. 38(5), pages 445-460, September.
    2. Andrew B Bernard & J. Bradford Jensen, 2007. "Firm Structure, Multinationals, and Manufacturing Plant Deaths," The Review of Economics and Statistics, MIT Press, vol. 89(2), pages 193-204, May.
    3. Augustin Landier & Vinay B. Nair & Julie Wulf, 2009. "Trade-offs in Staying Close: Corporate Decision Making and Geographic Dispersion," The Review of Financial Studies, Society for Financial Studies, vol. 22(3), pages 1119-1148.
    4. Blundell, Richard & Bond, Stephen, 1998. "Initial conditions and moment restrictions in dynamic panel data models," Journal of Econometrics, Elsevier, vol. 87(1), pages 115-143, August.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    multi-plant firms; firm headquarters; employment; investment; Italy;
    All these keywords.

    JEL classification:

    • R30 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - General
    • L20 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - General
    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business

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