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- W3206820907 abstract "We study the determinants of vertical integration. We first derive a number of predictions regarding the relationship between technology intensity and vertical integration from a simple incompletecontractsmodel.Then,weinvestigatethesepredictionsusingplant-leveldataforthe UKmanufacturingsector.Mostimportantly,andconsistentwiththetheoreticalpredictions,we find that the technology intensity of downstream (producer) industries is positively correlated with the likelihood of integration whereas the intensity of upstream (supplier) industries is negatively correlated with it. Also consistent with theory, both correlations are stronger when the supplying industry accounts for a large fraction of the producer’s costs. These results are generally robust and hold with alternative measures of technology intensity, with alternative estimation strategies, and with or without controlling for a number of firm- and industry-level characteristics. (JEL: L22, L23, L24, L60)" @default.
- W3206820907 created "2021-10-25" @default.
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- W3206820907 date "2004-12-01" @default.
- W3206820907 modified "2023-10-18" @default.
- W3206820907 title "Vertical Integration and Technology: Theory and Evidence" @default.
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- W3206820907 doi "https://doi.org/10.3386/w10997" @default.
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