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Understanding the life-cycle of a manufacturing plant

Aubhik Khan ()

Business Review, 2002, issue Q2, 25-32

Abstract: In the final article this quarter, Aubhik Khan wonders: What determines whether a manufacturing plant survives? Is it access to credit markets? Or does learning about plants' profitability over time determine survival? Should government policy play a role in helping plants survive? In \\"Understanding the Life-Cycle of a Manufacturing Plant,\\" Khan discusses the collateral and learning views as two possible explanations for a typical plant's life-cycle. He concludes that although it remains unclear as to which explanation is more relevant, the two views have very different implications for what government can do and what it should do.

Keywords: Plant shutdowns; Manufactures (search for similar items in EconPapers)
Date: 2002
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