Title:
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Which firms are involved in foreign vertical integration? [WP-IEB]
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Author:
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Pelegrín Solé, Àngels; Garcia-Quevedo, Jose
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Notes:
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In line with the literature that considers that transaction costs, asset specificity and incomplete contracts play a key role in the “make or buy decision”, this paper seeks to discriminate the characteristics of firms that make them more or less likely to integrate their activities in a foreign country. We draw on firm level data for Spanish manufacturing firms from the Survey on Business Strategies (ESEE), which enable us to identify whether their imports are intra-firm (related party) or at arm’s-length (non-related party). Our results show that candidates for vertical integration are the most productive firms and those that receive a large share of their inputs from headquarters. We also demonstrate that international experience and product differentiation favor foregin integration even after controlling for other characteristics of the firm. |
Subject(s):
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-Deslocalització industrial -Integració vertical -Business relocation -Vertical integration |
Rights:
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cc-by-nc-nd, (c) Pelegrín Solé et al., 2012
http://creativecommons.org/licenses/by-nc-nd/3.0/es/
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Document type:
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Working Paper |
Published by:
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Institut d’Economia de Barcelona
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