Notes

^1.

McGuckin and Nguyen (1995) suggest that the determinants of merger activity across size classes differ and that other studies (i.e., Lichtenberg and Siegel 1992) that rely on a subset of only large firms provide results that are particular only to this group.

^2.

In this study, the terms domestic-owned and Canadian-owned are used interchangeably.

^3.

Similar results have been reported for the U.S. (Doms and Jensen, 1998), for the U.K. (Conyon et al., 2002), and for Indonesia (Takii, 2004).

^4.

See Caves (1996).

^5.

We make use of our variables in relative form to deal with the lack of special price data for each plant. A similar methodology is employed in Christensen, Cummings and Jorgenson (1981), Olley and Pakes (1996), Dhrymes and Bartlesman (1992), Baily, Hulten and Campbell (1992), Baldwin (1992). McGuckin and Nguyen (1995).

^6.

See Baldwin, Beckstead and Caves (2002) for a study of plant-level diversification and a discussion of the Herfindahl measure of product diversification.

^7.

Value added is the value of sales minus the value of purchases of intermediate goods and services.

^8.

See Baldwin and Rafiquzzaman (1994) for a discussion of the methodology used to create these groupings.

^9.

During the period, the file was essentially a census of all plants—with the smallest plants being covered with administrative tax files. It is only post 2003 that the file has become a sample survey. In the survey, plants are asked the following information: value added, shipments, production workers, non-production workers, nationality of owners, cost of materials, cost of heat and energy, among others.

^10.

For further descriptions of the file, see Baldwin (1995), Baldwin, Beckstead and Girard (2002).

^11.

Quartiles are defined by four-digit SIC.

^12.

The mean is calculated for the sample as a whole with the exception of the foreign binary variable, which is set equal to zero.