How Wide is the Firm Border?
We examine the within- and across-firm shipment decisions of tens of thousands of goods-producing and goods-distributing establishments. This allows us to quantify the normally unobservable forces that determine firm boundaries; that is, which transactions are mediated by ownership control, as opposed to contracts or markets. We find firm boundaries to be an economically significant barrier to trade: Having an additional vertically integrated establishment in a given destination ZIP code has the same effect on shipment volumes as a 40 percent reduction in distance. These effects are larger for high value-to-weight products, for faraway destinations, for differentiated products, and for IT-intensive industries
Year of publication: |
2019
|
---|---|
Authors: | Hortacsu, Ali |
Other Persons: | Li, Mary Jialin (contributor) ; Syverson, Chad (contributor) |
Publisher: |
[2019]: [S.l.] : SSRN |
Subject: | Make-or- Buy-Entscheidung | Make-or-buy decision | Binnenhandel | Domestic trade | Theorie der Unternehmung | Theory of the firm | Handelshemmnisse | Trade barriers | Gravitationsmodell | Gravity model |
Saved in:
freely available
Extent: | 1 Online-Ressource (61 p) |
---|---|
Series: | FRB of Philadelphia Working Paper ; No. 19-37 |
Type of publication: | Book / Working Paper |
Language: | English |
Notes: | Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments 2019-10-01 erstellt |
Source: | ECONIS - Online Catalogue of the ZBW |
Persistent link: https://www.econbiz.de/10012860546