NDLI: Revealing incentives for vertical integration in the presence of glocal policies

Please wait, while we are loading the content...

Revealing incentives for vertical integration in the presence of glocal policies

Content Provider	Semantic Scholar
Author	Giannoccolo, Pierpaolo Vergari, Cecilia
Copyright Year	2015
Abstract	Local and regional policy makers are acquiring an increasingly active role in a¤ecting rms specialization decisions that in turn inuence rmsvertical organization. We analyse the relation between vertical integration incentives and trade liberalization in the presence of glocal policies, i.e., specic (local) policies that have international (global) impact. More precisely, one of the most important reasons for vertical integration in the presence of sunk costs of specialization is avoiding the risk of hold up. We introduce the idea that this sunk cost can be manipulated by the policy maker at national/regional/local level. We characterize the conditions under which policies are e¤ective in achieving a particular equilibrium in terms of vertical structure and specialization decision. The main result is that the policy e¤ectiveness is stronger the higher is the importance of the hold-up problem. In particular, we investigate how glocal policies interact with policies that a¤ect the market openness (trade policy). We nd that for high values of the specialization upgrade cost, trade policies are ine¤ective. At the same time, if the trading cost is very low, glocal policies are ine¤ective. Finally, in the presence of intermediate specialization upgrade and trading cost, either policy supplements the other policy. JEL classication: D23, F15, F23, H54, L22. Keywords: Input production, vertical integration, hold-up problem, glocal policies, international openness. We thank for useful comments on a previous version Oscar Amerighi, Luigi Filippini and Marco Grazzi. We acknowledge the nancial support of the Fondazione Cassa di Risparmio Forlì. yDepartment of Economics (University of Bologna) pierpaolo.giannoccolo@unibo.it zDepartment of Economics (University of Bologna) cecilia.vergari@unibo.it.
File Format	PDF HTM / HTML
Alternate Webpage(s)	http://amsacta.unibo.it/4291/1/WP1015.pdf
Language	English
Access Restriction	Open
Subject Keyword	Cation Exchange Resins Cations Diabetes Insipidus Kind of quantity - Equilibrium OScar Openness Partial template specialization Policy
Content Type	Text
Resource Type	Article

Central Library (ISO-9001:2015 Certified)
Indian Institute of Technology Kharagpur
Kharagpur, West Bengal, India | PIN - 721302

See location in the Map
03222 282435
Mail: support@ndl.gov.in

Sl.	Authority	Responsibilities	Communication Details
1	Ministry of Education (GoI), Department of Higher Education	Sanctioning Authority	https://www.education.gov.in/ict-initiatives
2	Indian Institute of Technology Kharagpur	Host Institute of the Project: The host institute of the project is responsible for providing infrastructure support and hosting the project	https://www.iitkgp.ac.in
3	National Digital Library of India Office, Indian Institute of Technology Kharagpur	The administrative and infrastructural headquarters of the project	Dr. B. Sutradhar bsutra@ndl.gov.in
4	Project PI / Joint PI	Principal Investigator and Joint Principal Investigators of the project	Dr. B. Sutradhar bsutra@ndl.gov.in Prof. Saswat Chakrabarti will be added soon
5	Website/Portal (Helpdesk)	Queries regarding NDLI and its services	support@ndl.gov.in
6	Contents and Copyright Issues	Queries related to content curation and copyright issues	content@ndl.gov.in
7	National Digital Library of India Club (NDLI Club)	Queries related to NDLI Club formation, support, user awareness program, seminar/symposium, collaboration, social media, promotion, and outreach	clubsupport@ndl.gov.in
8	Digital Preservation Centre (DPC)	Assistance with digitizing and archiving copyright-free printed books	dpc@ndl.gov.in
9	IDR Setup or Support	Queries related to establishment and support of Institutional Digital Repository (IDR) and IDR workshops	idr@ndl.gov.in