Arbeitspapier
Vertical integration and supplier finance
We investigate the financial implications of a multinational firm's choice between outsourcing and integration from the perspective of the supplier. Using a simple model, we explore the extent to which an integrated supplier's access to finance, as well as its sources of funding, change relative to a firm supplying a multinational at arm's-length. The model predicts that integrated firms have better access to finance and cover a larger share of their costs using internal funds. Furthermore, improvements in a host country's level of financial development have less of an impact on the financial situation of integrated suppliers. We present empirical evidence from firm-level data for over 60 countries broadly supporting the predictions.
- Language
-
Englisch
- Bibliographic citation
-
Series: Kiel Working Paper ; No. 1894
- Classification
-
Wirtschaft
Multinational Firms; International Business
Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
- Subject
-
Vertical Integration
Financial Constraints
Multinational companies
- Event
-
Geistige Schöpfung
- (who)
-
Kersting, Erasmus
Görg, Holger
- Event
-
Veröffentlichung
- (who)
-
Kiel Institute for the World Economy (IfW)
- (where)
-
Kiel
- (when)
-
2014
- Handle
- Last update
-
10.03.2025, 11:44 AM CET
Data provider
This object is provided by:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Arbeitspapier
Associated
- Kersting, Erasmus
- Görg, Holger
- Kiel Institute for the World Economy (IfW)
Time of origin
- 2014
Other Objects (12)
Vertical Integration and Supplier Finance
Vertical integration and supplier finance
The vertical investment controversy: re-estimating the knowledge-capital model for different types of FDI
Multinationales as stabilizers? Economic crisis, access to finance, and employment growth
European integration and peripherality: are there lessons from Ireland?
Productivity spillovers through vertical linkages: evidence from 17 OECD countries
Ausländische Direktinvestitionen in Deutschland – die große Angst vor China
Fancy a stay at the Hotel California? Foreign direct investment, taxation and firing costs
Fancy a stay at the Hotel California? Foreign direct investment, taxation and exit costs
US-Subventionspaket IRA: Bye bye, Europe?
Analysing foreign market entry: the choice between greenfield investment and acquisitions
Making investment work for productivity-enhancing, inclusive and sustainable development: What we know, and what we would still like to know
Vertical Integration and Supplier Finance
Vertical integration and supplier finance
The vertical investment controversy: re-estimating the knowledge-capital model for different types of FDI
Multinationales as stabilizers? Economic crisis, access to finance, and employment growth
European integration and peripherality: are there lessons from Ireland?
Productivity spillovers through vertical linkages: evidence from 17 OECD countries
Ausländische Direktinvestitionen in Deutschland – die große Angst vor China
Fancy a stay at the Hotel California? Foreign direct investment, taxation and firing costs
Fancy a stay at the Hotel California? Foreign direct investment, taxation and exit costs
US-Subventionspaket IRA: Bye bye, Europe?
Analysing foreign market entry: the choice between greenfield investment and acquisitions
Making investment work for productivity-enhancing, inclusive and sustainable development: What we know, and what we would still like to know
Vertical Integration and Supplier Finance
Vertical integration and supplier finance
The vertical investment controversy: re-estimating the knowledge-capital model for different types of FDI
Multinationales as stabilizers? Economic crisis, access to finance, and employment growth
European integration and peripherality: are there lessons from Ireland?
Productivity spillovers through vertical linkages: evidence from 17 OECD countries
Ausländische Direktinvestitionen in Deutschland – die große Angst vor China
Fancy a stay at the Hotel California? Foreign direct investment, taxation and firing costs
Fancy a stay at the Hotel California? Foreign direct investment, taxation and exit costs
US-Subventionspaket IRA: Bye bye, Europe?
Analysing foreign market entry: the choice between greenfield investment and acquisitions