Vertical Integration and Efficiency: Ownership in the Swedish Sawmill Industry

Jonas Månsson ()

Review of Industrial Organization, 2004, vol. 24, issue 1, 25-36

Abstract: This study investigates different types of vertically integrated ownership types in relation to technical efficiency, in the Swedish sawmill industry. The theoretical findings connecting vertical integration and efficiency points in two directions: both in favour for non-integrated firms and in favour for fully integrated firms. In the study, significant differences between ownership types are not found. One possible interpretation of this result is that the integration advantages outweigh the possible negative effects an integrated firms will have from maximising an integrated objective function.

Date: 2004
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