Trade Openness and Vertical Integration: Evidence from the U.S. Manufacturing Sector
AbstractThe present article aims to empirically examine a relationship between trade openness and the pattern of vertical integration using the six-digit North American Industry Classification System (NAICS) of U.S. manufacturing data from 2002 to 2006. We use the index of vertical integration made out of inter-plant transfers data by the U.S. Census Bureau, and we consider three proxies of trade openness—import penetration, export shares, and trade penetration. The empirical results substantiate McLaren's (2000) theoretical proposition that trade openness undermines motives for vertical integration.
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Bibliographic InfoArticle provided by Southern Economic Association in its journal Southern Economic Journal.
Volume (Year): 78 (2012)
Issue (Month): 4 (April)
Find related papers by JEL classification:
- F14 - International Economics - - Trade - - - Empirical Studies of Trade
- F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
- L22 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Organization and Market Structure
- L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General
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- Buehler, Stefan & Burghardt, Dirk, 2013. "Globalization and Vertical Structure: An Empirical Investigation," Economics Working Paper Series 1310, University of St. Gallen, School of Economics and Political Science.
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