Using firm-level data on vertical integration of Korean manufacturers, the paper tests whether trade liberalization is an important determinant of firm's decision on vertical integration. We develop an empirical framework incorporating trade openness into industrial organization models;...

This paper explores various strategic options available to Japanese firms faced with the increasing market pressures in the global economy. Whether Japanese firms are able to retain the competitive edge will depend on the continuing gains in their manufacturing capability, their capacity to...

We consider a vertically integrated input monopolist supplying to a differentiated downstream rival. With linear input pricing, at the margin the firm unambiguously wants the rival to expand — unlike standard oligopoly with no supply relationship — for either Cournot or Bertrand competition....