Vertical integration, foreign multinationals and Stigler's hypotheses: an empirical test using Malaysian data
In this paper the hypotheses on motives for vertical integration as proposed by Stigler are empirically tested using a panel dataset from Malaysian manufacturing under both fixed-effects and random-effects specifications. Because the degree of multinational participation is expected to influence the...
| Main Authors: | , , |
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| Format: | Article |
| Language: | English English |
| Published: |
East Asian Economic Association and Blackwell Publishing Ltd
2006
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| Subjects: | |
| Online Access: | http://psasir.upm.edu.my/id/eprint/18277/ http://psasir.upm.edu.my/id/eprint/18277/1/Vertical%20integration.pdf |
| _version_ | 1848843468819922944 |
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| author | Md. Nor, Nor Ghani Abdullah, Ahmad Zainuddin Md. Nor, Khalil |
| author_facet | Md. Nor, Nor Ghani Abdullah, Ahmad Zainuddin Md. Nor, Khalil |
| author_sort | Md. Nor, Nor Ghani |
| building | UPM Institutional Repository |
| collection | Online Access |
| description | In this paper the hypotheses on motives for vertical integration as proposed by Stigler are empirically tested using a panel dataset from Malaysian manufacturing under both fixed-effects and random-effects specifications. Because the degree of multinational participation is expected to influence the results of the regression estimates, empirical tests are conducted with and without controlling for the effect of foreign firms' participation. Depending on model specifications, evidence is found in favor of Stigler's hypotheses where vertical integration is positively related to demand growth and industry concentration. This result is generally consistent with those found in other vertical integration studies. Significantly, the coefficient estimates of the growth variable are not significant and biased downwards if there is no control on the effect of foreign multinationals in the estimation process. © 2006 East Asian Economic Association and Blackwell Publishing Ltd. |
| first_indexed | 2025-11-15T08:15:31Z |
| format | Article |
| id | upm-18277 |
| institution | Universiti Putra Malaysia |
| institution_category | Local University |
| language | English English |
| last_indexed | 2025-11-15T08:15:31Z |
| publishDate | 2006 |
| publisher | East Asian Economic Association and Blackwell Publishing Ltd |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | upm-182772015-10-26T02:38:50Z http://psasir.upm.edu.my/id/eprint/18277/ Vertical integration, foreign multinationals and Stigler's hypotheses: an empirical test using Malaysian data Md. Nor, Nor Ghani Abdullah, Ahmad Zainuddin Md. Nor, Khalil In this paper the hypotheses on motives for vertical integration as proposed by Stigler are empirically tested using a panel dataset from Malaysian manufacturing under both fixed-effects and random-effects specifications. Because the degree of multinational participation is expected to influence the results of the regression estimates, empirical tests are conducted with and without controlling for the effect of foreign firms' participation. Depending on model specifications, evidence is found in favor of Stigler's hypotheses where vertical integration is positively related to demand growth and industry concentration. This result is generally consistent with those found in other vertical integration studies. Significantly, the coefficient estimates of the growth variable are not significant and biased downwards if there is no control on the effect of foreign multinationals in the estimation process. © 2006 East Asian Economic Association and Blackwell Publishing Ltd. East Asian Economic Association and Blackwell Publishing Ltd 2006-09 Article PeerReviewed application/pdf en http://psasir.upm.edu.my/id/eprint/18277/1/Vertical%20integration.pdf Md. Nor, Nor Ghani and Abdullah, Ahmad Zainuddin and Md. Nor, Khalil (2006) Vertical integration, foreign multinationals and Stigler's hypotheses: an empirical test using Malaysian data. Asian Economic Journal, 20 (3). pp. 257-274. ISSN 1351-3958 http://dx.doi.org/10.1111/j.1467-8381.2006.00235.x International business enterprises - Malaysia Vertical integration Transaction costs doi:10.1111/j.1467-8381.2006.00235.x English |
| spellingShingle | International business enterprises - Malaysia Vertical integration Transaction costs Md. Nor, Nor Ghani Abdullah, Ahmad Zainuddin Md. Nor, Khalil Vertical integration, foreign multinationals and Stigler's hypotheses: an empirical test using Malaysian data |
| title | Vertical integration, foreign multinationals and Stigler's hypotheses: an empirical test using Malaysian data |
| title_full | Vertical integration, foreign multinationals and Stigler's hypotheses: an empirical test using Malaysian data |
| title_fullStr | Vertical integration, foreign multinationals and Stigler's hypotheses: an empirical test using Malaysian data |
| title_full_unstemmed | Vertical integration, foreign multinationals and Stigler's hypotheses: an empirical test using Malaysian data |
| title_short | Vertical integration, foreign multinationals and Stigler's hypotheses: an empirical test using Malaysian data |
| title_sort | vertical integration, foreign multinationals and stigler's hypotheses: an empirical test using malaysian data |
| topic | International business enterprises - Malaysia Vertical integration Transaction costs |
| url | http://psasir.upm.edu.my/id/eprint/18277/ http://psasir.upm.edu.my/id/eprint/18277/ http://psasir.upm.edu.my/id/eprint/18277/ http://psasir.upm.edu.my/id/eprint/18277/1/Vertical%20integration.pdf |