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ESS data used

Round 2, Round 4, Round 6: Austria, Belgium, Bulgaria, Croatia, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Italy, Latvia, Lithuania, Luxembourg, Netherlands, Norway, Poland, Portugal, Romania, Slovakia, Slovenia, Spain, Sweden, Switzerland, Turkey, United Kingdom

English title Vertical integration and social capital: Theory and empirics
Language English
Type Thesis/dissertation
Year 2019


We study the impact of social capital on vertical integration using information at the four-digit level for manufacturing sectors in 30 European countries. According to transaction cost theory, firms buy their inputs in the market rather than produce them internally if they do not fear to be cheated by their suppliers. Since social capital promotes trust and trustworthiness, we expect that the higher the level of social capital, the higher the reliance on external procurement of inputs. This prediction is confirmed by empirical analyses. Furthermore, we show that the impact of social capital is differentiated among industrial sectors.

Awarding institutionUniversità degli studi di Udine
Number of pages0
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