IDEAS home Printed from https://ideas.repec.org/p/ris/kiepwp/2009_008.html
   My bibliography  Save this paper

Trade Openness and Vertical Integration: Evidence from Korean Firm-Level Data

Author

Listed:
  • Hyun , Hea-Jung

    () (Korea Institute for International Economic Policy)

  • Hur , Jung

    () (Sogang University)

Abstract

Using firm-level data on vertical integration of Korean manufacturers, the paper tests whether trade liberalization is an important determinant of firm's decision on vertical integration. We develop an empirical framework incorporating trade openness into industrial organization models; transaction costs theory and theory of internal costs of management. The empirical results of the paper suggest that trade openness is negatively related with vertical integration. A further analysis on firm's decision among four types of organizational forms in international contexts, however, reveals that trade liberalization has positive impact on cross-border vertical integration while it is negatively correlated with domestic vertical integration.

Suggested Citation

  • Hyun , Hea-Jung & Hur , Jung, 2009. "Trade Openness and Vertical Integration: Evidence from Korean Firm-Level Data," Working Papers 09-8, Korea Institute for International Economic Policy.
  • Handle: RePEc:ris:kiepwp:2009_008
    as

    Download full text from publisher

    File URL: https://ssrn.com/abstract=2955510
    File Function: Full text
    Download Restriction: no

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Emanuel Ornelas & John L. Turner, 2012. "Protection and International Sourcing," Economic Journal, Royal Economic Society, vol. 122(559), pages 26-63, March.

    More about this item

    Keywords

    Vertical Integration; Trade Liberalization; Transaction Costs; Internal Cost Of Management;

    JEL classification:

    • D23 - Microeconomics - - Production and Organizations - - - Organizational Behavior; Transaction Costs; Property Rights
    • 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

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ris:kiepwp:2009_008. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Juwon Seo) The email address of this maintainer does not seem to be valid anymore. Please ask Juwon Seo to update the entry or send us the correct email address. General contact details of provider: http://edirc.repec.org/data/kieppkr.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.