Firm Structure, Multinationals, and Manufacturing Plant Deaths

Plant shutdowns shape industry productivity, the dynamics of employment, and industrial restructuring. Plant closures account for more than half of gross job destruction in U.S. manufacturing. This paper examines the effects of firm structure on U.S. manufacturing plant closures. Plants belonging to multiplant firms and those owned by U.S. multinationals are less likely to exit. However, the superior survival chances are due to the characteristics of the plants rather than the nature of the firms. Controlling for plant and industry attributes, we find that plants owned by multiunit firms and U.S. multinationals are much more likely to close.