24 Pages Posted: 29 Dec 2008
Date Written: August 23, 2007
Availability of financial capital and location decisions are variables that influence regional manufacturing output. This study maintains that a region's manufacturing growth depends upon the region's firm-type dominance. That is, the type of firms that dominate the region's manufacturing output can be classified as non-local (national or foreign - NF) vs. local and large vs. small. Accordingly, for policy analysis, regions can be classified by firm-type dominance. This distinction is important since, invariably, location decision options and availability of financial capital are more favourable for the larger NF firms than for local firms. In an attempt to assess the impact of firm-type dominance, this study draws upon the dominant industry model [Salvary 1987] which has established that, in any given region, there is a dominant industry (the driving force of the region) to which a region's manufacturing growth is linked. The information on the impact of firm-type dominance on a region's manufacturing output may enable policy-makers to design workable (or revise existing) manufacturing diversification policies.
Keywords: state-regions and industry-regions, chemical industry region, regional policy analysis, manufacturing growth, firm-type dominance, availability of financial capital, dominant industry model, manufacturing firms' location decisions, regional economic development, foreign-owned manufacturing plants
JEL Classification: R00, R1, R11, R12
Suggested Citation: Suggested Citation
Salvary, Stanley C.W., The Impact of Firm-Type Dominance on Regional Manufacturing Growth (August 23, 2007). Available at SSRN: https://ssrn.com/abstract=1009331 or http://dx.doi.org/10.2139/ssrn.1009331