Trade liberalisation and plant exit in New Zealand manufacturing
Article Abstract:
The effects of trade liberalization on plant exit are studied using data on New Zealand manufacturing facilities. The hypothesis that a declining market may cause firms to adopt strategic behavior that causes low cost plants to exit first was shown to be generally unsupported. Surviving firms were found to be bigger and lower cost. These firms were also found to be owned by specialized business enterprises that own few plants. The importance of plant costs in explaining the plant-closing behavior of single-plant companies is found to be greater than the importance of firm size. Finally, diversified multi-plant firms were more likely to close plants and were influenced by plant size rather than plant cost.
Publication Name: Review of Economics and Statistics
Subject: Mathematics
ISSN: 0034-6535
Year: 1996
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The long-run demand for skilled and unskilled labor in Colombian manufacturing plants
Article Abstract:
An analysis of the Colombian labor supply variables reveals that the estimates of the output elasticity for skilled and unskilled labor are 0.894 and 0.755 respectively. The figures support long-run labor demand equations using microdata instead of sectoral or aggregate data. Wage elasticities are also different for both measures since demand curves for skilled and unskilled labor can be distinguished using microdata.
Publication Name: Review of Economics and Statistics
Subject: Mathematics
ISSN: 0034-6535
Year: 1997
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