CREAT: Census Research Exploration and Analysis Tool

GOVERNMENT TECHNICAL ASSISTANCE PROGRAMS* AND PLANT SURVIVAL: THE ROLE OF PLANT OWNERSHIP TYPE

February 1999

Written by: Ron Jarmin

Working Paper Number:

CES-99-02

Abstract

This paper compares the survival rates of plants participating in manufacturing extension programs to nonparticipating plants. Participating plants receive technical and business assistance from one of a nationwide network of extension centers intended to assist smaller manufacturers. Results suggest that plant survival is related to plant size, age, productivity, capital intensity and ownership type. Importantly, the impact of extension services differs across ownership types. Participating in extension increases the probability of survival for single unit plants, but not for multi units. This result is consistent with the notion that single unit plants have less access to information on new technologies and would, therefore, benefit more from technical assistance programs such as manufacturing extension.

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:
profitability, econometric, manufacturing, enterprise, industrial, technology, manufacturer, entrepreneurial, firms plants, small firms, diversification, incorporated, competitiveness, rural, agricultural, plants firms, plants industry, partnership, manufacturing plants

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:
Census of Manufactures, Annual Survey of Manufactures, Standard Statistical Establishment List, Small Business Administration, Longitudinal Research Database, Center for Economic Studies, Permanent Plant Number, Census Bureau Center for Economic Studies, Medical Expenditure Panel Survey, National Research Council, Research Data Center

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