search query: @freeterm openness / total: 5
reference: 4 / 5
| Author: | McLaren, J. |
| Title: | "Globalization" and vertical structure |
| Journal: | American Economic Review
2000 : DEC, VOL. 90:5, p. 1239-1254 |
| Index terms: | GLOBALIZATION VERTICAL INTEGRATION |
| Freeterms: | OPENNESS |
| Language: | eng |
| Abstract: | This paper analyzes the effects of international openness on vertical integration. Vertical integration can confer a negative externality, by thinning the market for inputs and thus worsening opportunism problems; this includes strategic complementarity and multiple equilibria in the integration decision, thus providing a theory of different "industrial systems" or "industrial cultures" in ex ante identical countries. International openness thickens the market, facilitating leaner, less integrated firms, thus providing gains from international openness quite different from those that are familiar from trade theory. |
SCIMA