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

초록

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 McLaren's (2000) theoretical proposition that trade openness undermines motives for vertical integration.

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