Trade Openness and Vertical Integration: Evidence from the U.S. Manufacturing Sector

Aekapol Chongvilaivan and Jung Hur

Southern Economic Journal, 2012, vol. 78, issue 4, 1242-1264

Abstract: The present article aims to empirically examine a relationship between trade openness and the pattern of vertical integration using the six‐digit North American Industry Classification System (NAICS) of U.S. manufacturing data from 2002 to 2006. We use the index of vertical integration made out of inter‐plant transfers data by the U.S. Census Bureau, and we consider three proxies of trade openness—import penetration, export shares, and trade penetration. The empirical results substantiate theoretical proposition that trade openness undermines motives for vertical integration.

Date: 2012
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
https://doi.org/10.4284/0038-4038-78.4.1242

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:wly:soecon:v:78:y:2012:i:4:p:1242-1264

Access Statistics for this article

More articles in Southern Economic Journal from John Wiley & Sons
Bibliographic data for series maintained by Wiley Content Delivery ().