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Manufacturing Plant Survival in a Period of Decline
Author(s) -
Low Sarah A.,
Brown Jason P.
Publication year - 2017
Publication title -
growth and change
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.657
H-Index - 55
eISSN - 1468-2257
pISSN - 0017-4815
DOI - 10.1111/grow.12171
Subject(s) - metropolitan area , context (archaeology) , census , recession , hazard , proportional hazards model , hazard model , hazard ratio , demographic economics , economics , geography , business , demography , population , biology , statistics , ecology , confidence interval , mathematics , archaeology , sociology , keynesian economics
We examine the effects of individual plant and local characteristics on explaining survival of manufacturing plants over the last two recessions. We link the establishment‐level Rural Manufacturing Survey to longitudinal establishment employment records (Quarterly Census of Employment and Wages) and examine establishment survival using a Cox proportional hazards model. We find that independent and smaller plants were most likely to survive this period of manufacturing decline (1996–2011) and their survival was more affected by local context than establishments which are part of a multi‐plant firm. Among independent plants, we find that those in metropolitan counties had higher hazard rates despite finding access to local markets being a driver of survival. Plants located in more competitive counties had higher hazard rates.