Trade Openness and Vertical Structure:Evidence from Korean Firm-Level Data
AbstractRecent theories and empirics suggest that trade openness increases world trade through production fragmentation across countries. In this paper we focus on the relationship between trade openness and firms¡¯ choices of vertical structure. We find firm-level data evidence that upon trade liberalization firms have been restructuring their organization by downsizing their domestic production processes (i.e. domestic vertical disintegration), and relocating their input production plants to other countries (i.e. cross-border vertical integration).
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Bibliographic InfoPaper provided by Research Institute for Market Economy, Sogang University in its series Working Papers with number 1106.
Length: 25 pages
Date of creation: Sep 2011
Date of revision:
Trade Openness; Vertical Integration; Intra-Firm Trade; Foreign Outsourcing;
Find related papers by JEL classification:
- 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
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