TY  - BOOK
AU  - Acemoglu,Daron
AU  - Aghion,Philippe
AU  - Griffith,Rachel
AU  - Zilibotti,Fabrizio
ED  - National Bureau of Economic Research.
TI  - Vertical Integration and Technology: Theory and Evidence 
T2  - NBER working paper series
PY  - 2004///
CY  - Cambridge, Mass.
PB  - National Bureau of Economic Research
N1  - December 2004; Hardcopy version available to institutional subscribers
N2  - This paper investigates the determinants of vertical integration using data from the UK manufacturing sector. We find that the relationship between a downstream (producer) industry and an upstream (supplier) industry is more likely to be vertically integrated when the producing industry is more technology intensive and the supplying industry is less technology intensive. Moreover, both of these effects are stronger when the supplying industry accounts for a large fraction of the producer's costs. These results are generally robust and hold with alternative measures of technology intensity, with alternative estimation strategies, and with or without controlling for a number of firm and industry-level characteristics. They are consistent with the incomplete contract theories of the firm that emphasize both the potential costs and benefits of vertical integration in terms of investment incentives
UR  - https://www.nber.org/papers/w10997
UR  - http://dx.doi.org/10.3386/w10997
ER  -