Vertical integration and technology
Subtitle: theory and evidence
By: Daron Acemoglu ... [et al.].
Contributors: Acemoglu, Daron.; National Bureau of Economic Research.
Series: NBER working paper series -- no. 10997.; Working paper series (National Bureau of Economic Research) -- working paper no. 10997.
Publisher: National Bureau of Economic Research
Published: 2004
Place of publication: Cambridge, Mass
Language: eng
Number of pages: 34
Subjects: Vertical integration -- Great Britain; High technology industries -- Vertical integration
Description: "This paper investigates the determinants of vertical integration using data from the UK manufacturing sector. We find that the relationship between a downstream (producer) industry and an upstream (supplier) industry is more likely to be vertically integrated when the producing industry is more technology intensive and the supplying industry is less technology intensive. Moreover, both of these effects 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. They are consistent with the incomplete contract theories of the firm that emphasize both the potential costs and benefits of vertical integration in terms of investment incentives"--National Bureau of Economic Research web site.
Notes: "December 2004."

Includes bibliographical references (p. 31-34).

Also available in PDF from the NBER world wide web site (www.nber.org).