Do Prices Determine Vertical Integration? Evidence from Trade Policy
Laura Alfaro, Paola Conconi, Harald Fadinger, Andrew Newman,
Sun, 10/28/2012 - 00:00
This paper shows that product prices determine organisational design by studying how trade policy affects vertical integration. The authors construct firm-level indices of vertical integration for a large set of countries and industries and exploit cross-section and time-series variation in import tariffs to examine the impact of prices on organisational choices.
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property rights , industrial organisation , vertical integration