Globalization and Vertical Structure: An Empirical Investigation

Stefan Bühler and Dirk Burghardt
Authors registered in the RePEc Author Service: Stefan Buehler

VfS Annual Conference 2014 (Hamburg): Evidence-based Economic Policy from Verein für Socialpolitik / German Economic Association

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.

JEL-codes: D23 F10 L22 (search for similar items in EconPapers)
Date: 2014
New Economics Papers: this item is included in nep-int
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https://www.econstor.eu/bitstream/10419/100335/1/VfS_2014_pid_344.pdf (application/pdf)

Related works:
Working Paper: Globalization and Vertical Structure: An Empirical Investigation (2013)
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:vfsc14:100335

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