Do Prices Determine Vertical Integration? Evidence from Trade Policy

Laura Alfaro, Paola Conconi, Harald Fadinger, Andrew Newman, 28 October 2012

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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URL: www.cepr.org/pubs/dps/DP9200.asp
Topics: Industrial organisation
Tags: industrial organisation, property rights, vertical integration

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