Antitrust & Competition Policy Blog

Editor: D. Daniel Sokol
University of Florida
Levin College of Law

Friday, January 19, 2018

Import Competition and Vertical Integration: Evidence from India

Vencappa, Dev and Stiebale, Joel study Import Competition and Vertical Integration: Evidence from India.

ABSTRACT: This paper uses a rich firm-product panel data set of Indian manufacturing firms to analyze the relationship between import competition and vertical integration. Exploiting exogenous variations from changes in India's trade policy, we find that import competition induced by falling output tariffs increases vertical integration by domestic firms, with the effects concentrated in rather homogenous product categories, among firms that mainly operate on the domestic market and in larger firms.

http://lawprofessors.typepad.com/antitrustprof_blog/2018/01/import-competition-and-vertical-integration-evidence-from-india.html

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