{"title":"进口竞争与国内纵向一体化:来自中国企业的理论与证据","authors":"Xin Du, Xiaoxia Shi","doi":"arxiv-2408.13706","DOIUrl":null,"url":null,"abstract":"What impact does import competition have on firms' production organizational\nchoices? Existing literature has predominantly focused on the relationship\nbetween import competition and firms' global production networks, with less\nattention given to domestic. We first develop a Nash-bargaining model to guide\nour empirical analysis, then utilize tariff changes as an exogenous shock to\ntest our theoretical hypotheses using a database of Chinese listed firms from\n2000 to 2023. Our findings indicate that a decrease in downstream tariffs lead\nto an increase in vertical integration. In our mechanism tests, we discover\nthat a reduction in upstream tariffs also enhances this effect. Moreover, the\nimpact of tariff reductions on vertical integration is primarily observed in\nindustries with high asset specificity, indicating that asset-specificity is a\ncrucial mechanism. We further explore whether import competition encourages\nvertical integration for technological acquisition purpose, the effect is found\nonly among high-tech firms, while it's absent in non-high-tech firms. Our\nresearch provides new perspectives and evidence on how firms optimize their\nproduction organization in the process of globalization.","PeriodicalId":501273,"journal":{"name":"arXiv - ECON - General Economics","volume":"50 1","pages":""},"PeriodicalIF":0.0000,"publicationDate":"2024-08-25","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"0","resultStr":"{\"title\":\"Import competition and domestic vertical integration: Theory and Evidence from Chinese firms\",\"authors\":\"Xin Du, Xiaoxia Shi\",\"doi\":\"arxiv-2408.13706\",\"DOIUrl\":null,\"url\":null,\"abstract\":\"What impact does import competition have on firms' production organizational\\nchoices? Existing literature has predominantly focused on the relationship\\nbetween import competition and firms' global production networks, with less\\nattention given to domestic. We first develop a Nash-bargaining model to guide\\nour empirical analysis, then utilize tariff changes as an exogenous shock to\\ntest our theoretical hypotheses using a database of Chinese listed firms from\\n2000 to 2023. Our findings indicate that a decrease in downstream tariffs lead\\nto an increase in vertical integration. In our mechanism tests, we discover\\nthat a reduction in upstream tariffs also enhances this effect. Moreover, the\\nimpact of tariff reductions on vertical integration is primarily observed in\\nindustries with high asset specificity, indicating that asset-specificity is a\\ncrucial mechanism. We further explore whether import competition encourages\\nvertical integration for technological acquisition purpose, the effect is found\\nonly among high-tech firms, while it's absent in non-high-tech firms. Our\\nresearch provides new perspectives and evidence on how firms optimize their\\nproduction organization in the process of globalization.\",\"PeriodicalId\":501273,\"journal\":{\"name\":\"arXiv - ECON - General Economics\",\"volume\":\"50 1\",\"pages\":\"\"},\"PeriodicalIF\":0.0000,\"publicationDate\":\"2024-08-25\",\"publicationTypes\":\"Journal Article\",\"fieldsOfStudy\":null,\"isOpenAccess\":false,\"openAccessPdf\":\"\",\"citationCount\":\"0\",\"resultStr\":null,\"platform\":\"Semanticscholar\",\"paperid\":null,\"PeriodicalName\":\"arXiv - ECON - General Economics\",\"FirstCategoryId\":\"1085\",\"ListUrlMain\":\"https://doi.org/arxiv-2408.13706\",\"RegionNum\":0,\"RegionCategory\":null,\"ArticlePicture\":[],\"TitleCN\":null,\"AbstractTextCN\":null,\"PMCID\":null,\"EPubDate\":\"\",\"PubModel\":\"\",\"JCR\":\"\",\"JCRName\":\"\",\"Score\":null,\"Total\":0}","platform":"Semanticscholar","paperid":null,"PeriodicalName":"arXiv - ECON - General Economics","FirstCategoryId":"1085","ListUrlMain":"https://doi.org/arxiv-2408.13706","RegionNum":0,"RegionCategory":null,"ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"","JCRName":"","Score":null,"Total":0}
Import competition and domestic vertical integration: Theory and Evidence from Chinese firms
What impact does import competition have on firms' production organizational
choices? Existing literature has predominantly focused on the relationship
between import competition and firms' global production networks, with less
attention given to domestic. We first develop a Nash-bargaining model to guide
our empirical analysis, then utilize tariff changes as an exogenous shock to
test our theoretical hypotheses using a database of Chinese listed firms from
2000 to 2023. Our findings indicate that a decrease in downstream tariffs lead
to an increase in vertical integration. In our mechanism tests, we discover
that a reduction in upstream tariffs also enhances this effect. Moreover, the
impact of tariff reductions on vertical integration is primarily observed in
industries with high asset specificity, indicating that asset-specificity is a
crucial mechanism. We further explore whether import competition encourages
vertical integration for technological acquisition purpose, the effect is found
only among high-tech firms, while it's absent in non-high-tech firms. Our
research provides new perspectives and evidence on how firms optimize their
production organization in the process of globalization.