Vertical integration in American manufacturing: Evidence for the 1980s

Research output: Contribution to journalArticle

7 Citations (Scopus)

Abstract

Many scholars have argued that the ownership of sequential stages in goods production fragmented in the 1980s, although few scholars have produced concrete evidence substantiating vertical disintegration. In this study, two measures are used to estimate vertical integration in U.S. manufacturing sectors in 1977 and 1987. Total vertical integration is the proportion of all shipments in a manufacturing sector dispatched by establishments to all other establishments belonging to the same companies. Manufacturing vertical integration estimates the proportion of manufacturing shipments that firms internalize. Both measures are calculated for aggregate manufacturing and all two-digit manufacturing sectors. Manufacturing vertical integration is also calculated for 79 four-digit producer goods sectors. Results show that the level of vertical integration in aggregate manufacturing was modest in 1977 and that a small decline occurred in the following decade. Individual manufacturing sectors underwent both vertical integration and disintegration in the period. The findings cast doubt on the claim in the flexible specialization thesis that ownership in production chains generally splintered in the 1980s.

Original languageEnglish (US)
Pages (from-to)343-356
Number of pages14
JournalProfessional Geographer
Volume48
Issue number4
StatePublished - Nov 1996

Fingerprint

vertical integration
manufacturing
manufacturing sector
evidence
ownership
goods production
specialization
producer
firm

Keywords

  • Industrial restructuring
  • Manufacturing
  • Vertical integration

ASJC Scopus subject areas

  • Geography, Planning and Development

Cite this

Vertical integration in American manufacturing : Evidence for the 1980s. / O'Huallachain, Breandan.

In: Professional Geographer, Vol. 48, No. 4, 11.1996, p. 343-356.

Research output: Contribution to journalArticle

@article{cbb56202b9314c4da6219b2a0c224b91,
title = "Vertical integration in American manufacturing: Evidence for the 1980s",
abstract = "Many scholars have argued that the ownership of sequential stages in goods production fragmented in the 1980s, although few scholars have produced concrete evidence substantiating vertical disintegration. In this study, two measures are used to estimate vertical integration in U.S. manufacturing sectors in 1977 and 1987. Total vertical integration is the proportion of all shipments in a manufacturing sector dispatched by establishments to all other establishments belonging to the same companies. Manufacturing vertical integration estimates the proportion of manufacturing shipments that firms internalize. Both measures are calculated for aggregate manufacturing and all two-digit manufacturing sectors. Manufacturing vertical integration is also calculated for 79 four-digit producer goods sectors. Results show that the level of vertical integration in aggregate manufacturing was modest in 1977 and that a small decline occurred in the following decade. Individual manufacturing sectors underwent both vertical integration and disintegration in the period. The findings cast doubt on the claim in the flexible specialization thesis that ownership in production chains generally splintered in the 1980s.",
keywords = "Industrial restructuring, Manufacturing, Vertical integration",
author = "Breandan O'Huallachain",
year = "1996",
month = "11",
language = "English (US)",
volume = "48",
pages = "343--356",
journal = "Professional Geographer",
issn = "0033-0124",
publisher = "Taylor and Francis Ltd.",
number = "4",

}

TY - JOUR

T1 - Vertical integration in American manufacturing

T2 - Evidence for the 1980s

AU - O'Huallachain, Breandan

PY - 1996/11

Y1 - 1996/11

N2 - Many scholars have argued that the ownership of sequential stages in goods production fragmented in the 1980s, although few scholars have produced concrete evidence substantiating vertical disintegration. In this study, two measures are used to estimate vertical integration in U.S. manufacturing sectors in 1977 and 1987. Total vertical integration is the proportion of all shipments in a manufacturing sector dispatched by establishments to all other establishments belonging to the same companies. Manufacturing vertical integration estimates the proportion of manufacturing shipments that firms internalize. Both measures are calculated for aggregate manufacturing and all two-digit manufacturing sectors. Manufacturing vertical integration is also calculated for 79 four-digit producer goods sectors. Results show that the level of vertical integration in aggregate manufacturing was modest in 1977 and that a small decline occurred in the following decade. Individual manufacturing sectors underwent both vertical integration and disintegration in the period. The findings cast doubt on the claim in the flexible specialization thesis that ownership in production chains generally splintered in the 1980s.

AB - Many scholars have argued that the ownership of sequential stages in goods production fragmented in the 1980s, although few scholars have produced concrete evidence substantiating vertical disintegration. In this study, two measures are used to estimate vertical integration in U.S. manufacturing sectors in 1977 and 1987. Total vertical integration is the proportion of all shipments in a manufacturing sector dispatched by establishments to all other establishments belonging to the same companies. Manufacturing vertical integration estimates the proportion of manufacturing shipments that firms internalize. Both measures are calculated for aggregate manufacturing and all two-digit manufacturing sectors. Manufacturing vertical integration is also calculated for 79 four-digit producer goods sectors. Results show that the level of vertical integration in aggregate manufacturing was modest in 1977 and that a small decline occurred in the following decade. Individual manufacturing sectors underwent both vertical integration and disintegration in the period. The findings cast doubt on the claim in the flexible specialization thesis that ownership in production chains generally splintered in the 1980s.

KW - Industrial restructuring

KW - Manufacturing

KW - Vertical integration

UR - http://www.scopus.com/inward/record.url?scp=0030441537&partnerID=8YFLogxK

UR - http://www.scopus.com/inward/citedby.url?scp=0030441537&partnerID=8YFLogxK

M3 - Article

AN - SCOPUS:0030441537

VL - 48

SP - 343

EP - 356

JO - Professional Geographer

JF - Professional Geographer

SN - 0033-0124

IS - 4

ER -