 Regional cooperation and corporate vertical disintegration: Evidence from Chinese listed companiesHongmei Wang, Zitian Hu, Xinyu Cui, Chun Yuan and Yang Zhao International Review of Economics & Finance, 2025, vol. 101, issue C Abstract: This study examines the impact of regional cooperation on corporate vertical disintegration. To provide a theoretical foundation, we extend the Grossman-Hart-Moore framework by incorporating parameters that capture the degree of regional cooperation and the transaction costs typically incurred by suppliers and producers. Using detailed firm-level data from Chinese listed companies, our empirical analysis demonstrates that regional cooperation significantly promotes vertical disintegration. The mechanism analysis suggests that this effect is primarily driven by a reduction in external transaction costs, which increases outsourcing efficiency and facilitates stronger inter-firm collaboration. Moreover, further analysis shows that the enhanced vertical disintegration facilitated by regional cooperation can significantly improve corporate production efficiency. These findings highlight the critical role of regional cooperation in reshaping corporate structures and enhancing economic performance. Keywords: Regional cooperation; Vertical disintegration; Transaction cost; Total factor productivity (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:reveco:v:101:y:2025:i:c:s1059056025003429 DOI: 10.1016/j.iref.2025.104179 Access Statistics for this article International Review of Economics & Finance is currently edited by H. Beladi and C. Chen More articles in International Review of Economics & Finance from Elsevier |
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