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The Growth and Failure of U.S. Manufacturing Plants

Timothy Dunne, Mark J. Roberts () and Larry Samuelson

The Quarterly Journal of Economics, 1989, vol. 104, issue 4, pages 671-98

Abstract: This paper examines the patterns of postentry growth and failure for over 200,000 plants that entered the U.S. manufacturing sector in the 1967-77 period. The postentry patterns of growth and failure vary significantly with observable employer characteristics. Plant failure rates decline with size and age as do the growth rates of nonfailing plants. The expected growth rate of a plant, which depends on the net effect of these two forces, declines with size for plants owned by single-plant firms, but increases with size for plants owned by multiplant firms. Copyright 1989, the President and Fellows of Harvard College and the Massachusetts Institute of Technology.

Date: 1989
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Working Paper: THE GROWTH AND FAILURE OF U.S. MANUFACTURING PLANTS (1988)
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