The determinants of plant survival in the U.S. radio equipment industry during the Great Depression

Scott, P. ORCID: https://orcid.org/0000-0003-1230-9040 and Ziebarth, N. (2015) The determinants of plant survival in the U.S. radio equipment industry during the Great Depression. The Journal of Economic History, 75 (4). pp. 1097-1127. ISSN 1471-6372 doi: 10.1017/S0022050715001503

Abstract/Summary

Automobile manufacture is generally regarded as the paradigmatic mass production industry, with large plants able to exploit scale economies. We argue that the radio industry also sheds important light on evolving production technology and determinants of competitive success in inter-war manufacturing. Timothy F. Bresnahan and Daniel M.G. Raff (1991) showed that productivity differences resulting from scale in the auto industry translated into differences in exit rates during the Depression. We find that technical scale economies did not play a large role in the radio industry. Instead selection during the Depression was on non-“technical” productivity factors, including whether or not a plant's parent company owned a brand.