Work

Globalization and Vertical Structure: An Empirical Investigation

Year: 2013

Type: book

Abstract: This paper studies the effect of trade facilitation on vertical firm structure using plant-level data from Switzerland. Based on the Business Census and the Input-Output table, we first calculate a binary measure of vertical integration for all plants registered in Switzerland. We then estimate the effect of a Mutual Recognition Agreement with the European Union on the plants' probability of being vertically integrated. Adopting a difference-in-differences approach, we find that this policy change reduced the treated plants' probability of being vertically integrated by about 10 percent. Our results are consistent with recent work in international trade theory.

Source: Alexandria (UniSG) (University of St.Gallen)

Authors: Stefan Bühler, Dirk Burghardt

Language: English

Topic: Global trade and economics

Subfield: General Economics, Econometrics and Finance

Field: Economics, Econometrics and Finance

Domain: Social Sciences

SDG: Decent work and economic growth

Open Access status: green

Funders: National Science Foundation, Schweizerischer Nationalfonds zur Förderung der Wissenschaftlichen Forschung, Leonard N. Stern School of Business, New York University

Awards: G3360777551, Essays in Industrial Organization, Industrial Organization, Regulation, and the Foundations of Competition Policy, Industrial Organization, Regulation, and the Foundations of Competition Policy

OpenAlex ID: W2122318585