Department of Economics and Business Economics

Trade Liberalisation and Vertical Integration: with Peter A. Bache

Research output: Working paperResearch

Standard

Trade Liberalisation and Vertical Integration : with Peter A. Bache. / Bache, Peter Arendorf; Laugesen, Anders Rosenstand.

Institut for Økonomi, Aarhus Universitet, 2016.

Research output: Working paperResearch

Harvard

Bache, PA & Laugesen, AR 2016 'Trade Liberalisation and Vertical Integration: with Peter A. Bache' Institut for Økonomi, Aarhus Universitet.

APA

Bache, P. A., & Laugesen, A. R. (2016). Trade Liberalisation and Vertical Integration: with Peter A. Bache. Institut for Økonomi, Aarhus Universitet.

CBE

Bache PA, Laugesen AR. 2016. Trade Liberalisation and Vertical Integration: with Peter A. Bache. Institut for Økonomi, Aarhus Universitet.

MLA

Bache, Peter Arendorf and Anders Rosenstand Laugesen Trade Liberalisation and Vertical Integration: with Peter A. Bache. Institut for Økonomi, Aarhus Universitet. 2016.,

Vancouver

Bache PA, Laugesen AR. Trade Liberalisation and Vertical Integration: with Peter A. Bache. Institut for Økonomi, Aarhus Universitet. 2016.

Author

Bache, Peter Arendorf ; Laugesen, Anders Rosenstand. / Trade Liberalisation and Vertical Integration : with Peter A. Bache. Institut for Økonomi, Aarhus Universitet, 2016.

Bibtex

@techreport{066faa6455c9472c8617ff6578c3f554,
title = "Trade Liberalisation and Vertical Integration: with Peter A. Bache",
abstract = "We build a three-country model of international trade in final goods and intermediate inputs and study the relation between four different types of trade liberalisation and vertical integration. Firms are heterogeneous with respect to both productivity and factor (headquarter) intensity. Final-good producers face decisions on exporting, vertical integration of intermediate-input production, and whether the intermediate-input production should be offshored to a low-wage country. We find that the fractions of final-good producers that pursue either vertical integration, offshoring, or exporting are all increasing when intermediate-input trade or final-goods trade is liberalised. Finally, we provide guidance for testing the open-economy property rights theory of the firm using firm-level data and surprisingly show that the relationship between factor (headquarter) intensity and the likelihood of vertical integration is nonmonotone.",
author = "Bache, {Peter Arendorf} and Laugesen, {Anders Rosenstand}",
year = "2016",
language = "Dansk",
publisher = "Institut for {\O}konomi, Aarhus Universitet",
type = "WorkingPaper",
institution = "Institut for {\O}konomi, Aarhus Universitet",

}

RIS

TY - UNPB

T1 - Trade Liberalisation and Vertical Integration

T2 - with Peter A. Bache

AU - Bache, Peter Arendorf

AU - Laugesen, Anders Rosenstand

PY - 2016

Y1 - 2016

N2 - We build a three-country model of international trade in final goods and intermediate inputs and study the relation between four different types of trade liberalisation and vertical integration. Firms are heterogeneous with respect to both productivity and factor (headquarter) intensity. Final-good producers face decisions on exporting, vertical integration of intermediate-input production, and whether the intermediate-input production should be offshored to a low-wage country. We find that the fractions of final-good producers that pursue either vertical integration, offshoring, or exporting are all increasing when intermediate-input trade or final-goods trade is liberalised. Finally, we provide guidance for testing the open-economy property rights theory of the firm using firm-level data and surprisingly show that the relationship between factor (headquarter) intensity and the likelihood of vertical integration is nonmonotone.

AB - We build a three-country model of international trade in final goods and intermediate inputs and study the relation between four different types of trade liberalisation and vertical integration. Firms are heterogeneous with respect to both productivity and factor (headquarter) intensity. Final-good producers face decisions on exporting, vertical integration of intermediate-input production, and whether the intermediate-input production should be offshored to a low-wage country. We find that the fractions of final-good producers that pursue either vertical integration, offshoring, or exporting are all increasing when intermediate-input trade or final-goods trade is liberalised. Finally, we provide guidance for testing the open-economy property rights theory of the firm using firm-level data and surprisingly show that the relationship between factor (headquarter) intensity and the likelihood of vertical integration is nonmonotone.

M3 - Working paper

BT - Trade Liberalisation and Vertical Integration

PB - Institut for Økonomi, Aarhus Universitet

ER -