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Causes and effects of vertical intergration

Causes and effects of vertical intergration This paper sets out to define new measures of industry-average forward and backward integration, and incorporate them into an empirical stucture–conduct–performance model. Results suggest that integration is encouraged where there are relatively few firms in an industry and if sales are increasing. Forward integration occurs in reaction to large outgoing distribution margins. Backward integration acts to increase concentration, at least in some parts of the manufacturing sector. Integratin has a complex and interactive effect on profitability, serving sometimes to raise profitability and sometimes to lower it. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Applied Economics Taylor & Francis

Causes and effects of vertical intergration

Applied Economics , Volume 18 (7): 19 – Jul 1, 1986

Causes and effects of vertical intergration

Applied Economics , Volume 18 (7): 19 – Jul 1, 1986

Abstract

This paper sets out to define new measures of industry-average forward and backward integration, and incorporate them into an empirical stucture–conduct–performance model. Results suggest that integration is encouraged where there are relatively few firms in an industry and if sales are increasing. Forward integration occurs in reaction to large outgoing distribution margins. Backward integration acts to increase concentration, at least in some parts of the manufacturing sector. Integratin has a complex and interactive effect on profitability, serving sometimes to raise profitability and sometimes to lower it.

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References (45)

Publisher
Taylor & Francis
Copyright
Copyright Taylor & Francis Group, LLC
ISSN
1466-4283
eISSN
9999-7004
DOI
10.1080/00036848600000089
Publisher site
See Article on Publisher Site

Abstract

This paper sets out to define new measures of industry-average forward and backward integration, and incorporate them into an empirical stucture–conduct–performance model. Results suggest that integration is encouraged where there are relatively few firms in an industry and if sales are increasing. Forward integration occurs in reaction to large outgoing distribution margins. Backward integration acts to increase concentration, at least in some parts of the manufacturing sector. Integratin has a complex and interactive effect on profitability, serving sometimes to raise profitability and sometimes to lower it.

Journal

Applied EconomicsTaylor & Francis

Published: Jul 1, 1986

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