Found 3 article(s) for author 'Vertical Integration'

Multinational Firms, Value Chains, and Vertical Integration

Multinational Firms, Value Chains, and Vertical Integration. Laura Alfaro, 2016, Paper, “In recent decades there has been a very rapid increase in flows of goods and capital between countries and between firms, driven by technological progress and falling cross-border restrictions. The rising ability to retain or outsource various production stages within firms and across country boundaries has fueled fragmentation of production and the emergence of global value chains. Cross-border production, investment, and trade in final and intermediate goods by multinational corporations (MNCs) are key drivers of this phenomenon.Link

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Do Prices Determine Vertical Integration? Evidence from around the World

Do Prices Determine Vertical Integration? Evidence from around the World. Laura Alfaro, June 2014, Paper. “Despite its pertinence for policy, the role of market forces in determining firms’ integration decisions has received relatively little attention in development economics. This paper focuses on the relationship between product prices and vertical integration: while the IO literature has focused on how integration affects prices, we offer evidence that prices can affect integration. Many theories in organizational economics and industrial organization posit that integration, while costly, increases productivity…” Link

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Do Prices Determine Vertical Integration?

Do Prices Determine Vertical Integration? Laura Alfaro, February 2014, Paper. “What is the relationship between product prices and vertical integration? While the literature has focused on how integration affects prices, this paper provides evidence that prices can affect integration. Many theories in organizational economics and industrial organization posit that integration, while costly, increases productivity. It follows from firms’ maximizing behavior that higher prices induce more integration. The reason is that at low prices, increases in revenue resulting from enhanced productivity are too small to justify the cost, whereas…” Link verified August 21, 2014

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