Empirical analysis of vertical integration has mostly been restricted to developed countries. But since the institutional context in developing countries is very different, so may be the factors that influence vertical integration. Estimates made using a new data set of Egyptian garment firms...

Egyptian data show that unilateralism dominates dispute resolution mechanisms, though with domestic clients bilateralism is equally important. Recourse to law and third parties is rare. Whether disputes are with suppliers or clients, domestic firms or foreign affects the choice of mechanism.