?url_ver=Z39.88-2004&rft_val_fmt=info%3Aofi%2Ffmt%3Akev%3Amtx%3Adc&rft.relation=http%3A%2F%2Feprints.imtlucca.it%2F2672%2F&rft.title=Organizing+the+Global+Value+Chain%3A+a+firm-level+test&rft.creator=Del+Prete%2C+Davide&rft.creator=Rungi%2C+Armando&rft.subject=HB+Economic+Theory&rft.description=In+this+paper+we+study+the+organization+of+Global+Value+Chains+on+a+sample+of+about+4%2C000+manufacturing+parent%0D%0Acompanies+operating+more+than+90%2C000+affiliates+on+a+global+scale%2C+which+chose+to+integrate+at+least+once+in+the%0D%0Aperiod+2004%E2%80%932012.+Assuming+a+technological+sequence+of+production+stages%2C+a+recent+property+rights+framework%0D%0A(Antr%C3%A0s+and+Chor%2C+2013%3B+Alfaro+et+al.%2C+2015)+predicts+that+a+choice+of+vertical+integration+is+crucially+based+on+both%0D%0Athe+position+of+a+supplier+along+the+chain+and+on+the+relative+size+of+demand+elasticities+faced+by+the+final+producer%0D%0Aand+the+supplier.+We+positively+test+whether%2C+if+final+demand+is+sufficiently+elastic+(inelastic)%2C+producers+of+final%0D%0Agoods+integrate+production+stages+that+are+more+proximate+to+(far+from)+the+consumers.+However%2C+this+is+not+valid%0D%0Afor+cases+of+midstream+parents%2C+i.e.+for+producers+of+intermediate+inputs+that+can+integrate+either+backward+or+forward%0D%0Aalong+the+chain.+We+document+that+midstream+are+at+least+as+common+as+are+downstream+parent+companies+but+that%0D%0Aexisting+theory+neglects+them.+In+these+cases%2C+we+find+that+demand+elasticities+do+not+play+a+significant+role+in%0D%0Aintegration+choices.+Interestingly%2C+both+midstream+and+downstream+parents+tend+to+integrate+affiliates+that+are+more%0D%0Aproximate+in+segments+of+a+supply+chain.+Our+findings+point+to+a+role+for+technological+determinants+that+may+be+as%0D%0Aimportant+as+are+contracting+frictions+in+organizing+Global+Value+Chains.&rft.publisher=IMT+School+for+Advanced+Studies+Lucca&rft.date=2015-05&rft.type=Working+Paper&rft.type=NonPeerReviewed&rft.format=application%2Fpdf&rft.language=en&rft.rights=cc_by_nd&rft.identifier=http%3A%2F%2Feprints.imtlucca.it%2F2672%2F1%2FEIC_WP_4_2015.pdf&rft.identifier=++Del+Prete%2C+Davide+and+Rungi%2C+Armando++Organizing+the+Global+Value+Chain%3A+a+firm-level+test.++EIC+working+paper+series++%234%2F2015++++IMT+School+for+Advanced+Studies+Lucca++++ISSN+2279-6894.++++++