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 ;; working paper 10997; Working paper series (National Bureau of Economic Research : Online) ;; working paper no. 10997.
Publisher: National Bureau of Economic Research
Published: 2004
Place of publication: Cambridge, MA
Language: eng
Format: Electronic resource
Subjects: Vertical integration -- Great Britain.; Manufacturing industries -- Great Britain.
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: Includes bibliographical references.
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