Localization of industry and vertical disintegration

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151 Scopus citations

Abstract

Theory suggests that vertical disintegration should be greater in areas where industries localize. This paper provides some evidence that this implication is true for the U.S. manufacturing sector. Purchased inputs as a percent of the value of output is used as a measure of vertical disintegration. To measure the localization of industry, for each manufacturing plant the amount of employment in neighboring plants in the same industry is determined.

Original languageEnglish (US)
Pages (from-to)314-325
Number of pages12
JournalReview of Economics and Statistics
Volume81
Issue number2
DOIs
StatePublished - May 1999

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