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| Dublin Core |
PKP Metadata Items |
Metadata for this Document |
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| 1. |
Title |
Title of document |
Lock-In, Vertical Integration, and Intra-group Sales: The Case of Eastern European Firms |
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| 2. |
Creator |
Author's name, affiliation, country |
Liliane Giardino-Karlinger; LUISS Guido Carli; Italy |
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| 3. |
Subject |
Discipline(s) |
Industrial Organization |
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| 3. |
Subject |
Keyword(s) |
Vertical integration, supplier substitution, transition countries |
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| 3. |
Subject |
Subject classification |
L14, L23, L25 |
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| 4. |
Description |
Abstract |
A key prediction of transaction cost economics is that the presence of relationship-specific assets increases the likelihood of vertical integration whenever contracts are incomplete. I explore a firm level data set on Eastern European and Central Asian firms, the BEEPS 2005 Survey provided by the EBRD and World Bank, to test this prediction. I measure lock-in by supplier substitution, and vertical integration by the presence of sales to the parent firm, and find the TCE prediction confirmed in the data: At the extensive margin, a firm whose customers are locked-in at medium or high levels is about 5 to 6 percent more likely to be vertically integrated than a firm whose customers are not locked-in. At the intensive margin, I find that high lock-in raises intra-group sales by about 2 percentage points. Being a large firm raises the probability of being vertically integrated significantly in itself, but does not alter the impact of lock-in on the probability of carrying out intra-group sales. Instead, operating in a non-manufacturing industry significantly reduces the probability of vertical integration, and also reduces the impact of high lock-in on the probability of having positive sales with a parent. |
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| 5. |
Publisher |
Organizing agency, location |
University of Perugia |
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| 6. |
Contributor |
Sponsor(s) |
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| 7. |
Date |
(YYYY-MM-DD) |
2016-06-10
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| 8. |
Type |
Status & genre |
Peer-reviewed Article |
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| 8. |
Type |
Type |
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| 9. |
Format |
File format |
PDF |
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| 10. |
Identifier |
Uniform Resource Identifier |
http://www.rei.unipg.it/rei/article/view/175 |
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| 10. |
Identifier |
Digital Object Identifier |
http://dx.doi.org/10.5202/rei.v%25vi%25i.175 |
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| 11. |
Source |
Title; vol., no. (year) |
Review of Economics and Institutions; Vol 7, No 1 (2016) |
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| 12. |
Language |
English=en |
en |
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| 13. |
Relation |
Supp. Files |
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| 14. |
Coverage |
Geo-spatial location, chronological period, research sample (gender, age, etc.) |
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| 15. |
Rights |
Copyright and permissions |
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